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Contaduría y administración

Print version ISSN 0186-1042


SOUZA, Paula de  and  LUNKES, Rogério João. Capital budgeting practices by large Brazilian companies. Contad. Adm [online]. 2016, vol.61, n.3, pp.514-534. ISSN 0186-1042.

This article aims to analyze the use of capital budgeting practices by large Brazilian companies. The survey technique was used for data collection in 51 companies traded on the Stock Exchange. Descriptive statistics were applied, aiming to improve the basis for discussions. The correlation was used to assess the theoretical assumptions of the research. The results show that companies adopt especially the Payback Period, the Net Present Value and the Internal Rate of Return in the assessment of capital budgeting, with scenario and sensitivity analyses to examine the investment risk. The assessment of theoretical assumptions developed in the study has shown that there is no relationship of cause and effect among the variables to explain the use of more sophisticated budgeting practices. Based on similar studies, it is concluded that there is a general trend of increasing sophistication in the various stages of investments budget in large Brazilian companies.

Keywords : Capital budgeting; Practices of the capital budgeting; Large Brazilian companies; Stock exchange; Investments.

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