Capital Budgeting: the Romanian Credit Analysts’ Points of View

This study aims to disclose the methods and instruments used by the credit analysts in the most important Romanian banks regarding capital budgeting. It can be noticed that the dominant standpoint converges to the recommendations of the main reference works in corporate finance. Hence, indicators li...

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Bibliographic Details
Published in:The review of finance and banking 2011-06, Vol.3 (1), p.39-45
Main Authors: Dragota, Ingrid - Mihaela, Dragotă, Victor, Ţâţu, Lucian, Pele, Daniel Traian, Vintilă, Nicoleta, Curmei Semenescu, Andreea
Format: Article
Language:English
Subjects:
Banking industry
Banks
Bond issues
Bond markets
Capital budgeting
Capital markets
Commercial banks
Discount rates
Economy
Employees
Financial Markets
Internet stocks
Investments
Leasing
Loans
Questionnaires
Stock exchanges
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Summary:This study aims to disclose the methods and instruments used by the credit analysts in the most important Romanian banks regarding capital budgeting. It can be noticed that the dominant standpoint converges to the recommendations of the main reference works in corporate finance. Hence, indicators like profitability index, net present value or internal rate of return are preferred by the most part of the credit analysts. Among the techniques of risk quantification, the sensitivity analysis is the most commonly used method by Romanian creditors. About the discount rate used in investment valuation, the main part of the respondents recommends the rate of return for similar projects in the sector
ISSN:2026-2713
2067-2713
2067-3825