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University of Technology and Applied Science
Business Studies Department
Course: BAFI3301|Project Appraisal
Reflective Essay
on Capital Budgeting Techniques in Kuwait
Student Name
Section No.
Student ID
Total Grad
/ Seven
According to the literature review, discuss briefly what are the
factors that affect the choice of capital budgeting techniques
(explain with an example)
One
Mark
Maxi.
Words: 50
Words
Discuss how the use of project appraisal techniques differs
according to the characteristics of a corporation? (explain with
an example)
One
Mark
Maxi.
Words: 50
Words
Based on the result of the study, explain briefly what is the major
obstacle of adopting capital budgeting techniques and explain
how this obstacle could be treated?
One
Mark
Maxi.
Words: 50
Words
If you got a similar chance to conduct a research on Capital
Budgeting in Oman, what would be your research topic? [hint:
which topic you will investigate and why]
One
Mark
Maxi.
Words: 50
Words
Three
Marks
Maxi.
Words: 40
Words
Mwasalat Company wants to renovate one of its existing buses at
cost of OMR 200,000 and the Company will incur a repair cost of
OMR 20,000 at the end of 3rd year from now. If these costs are
incurred, the bus will be useful for 6 years. After a 6-year period, it
will be sold at a salvage value of OMR 30,000. The total annual
revenues of the bus will be OMR 260,000 and the total cost to operate
the bus will be OMR 170,000 per year.
Alternatively, Mwasalat Company can purchase a new bus for OMR
190,000. The new bus will require some repairs at the end of the 6year period at a cost of OMR15,000. Its salvage value will be OMR
40,000 after its useful life of 6 years. The total annual revenues of
the new bus will be OMR 220,000 and its operating cost will be
OMR 130,000 per year.
The company’s required rate of return is 15% before taxes.
Required:
A. Should Mwasalat Company renovate the old bus or purchase
a new bus? Justify your answer.
B. Would the above decision of Mwasalat Company will change
if an specific inflation is the expected for annual operating
cost of new buses only at rate 3% every year? Justify your
answer.
C. Based on the above article, what are limitation of adopting
NPV as capital budgeting techniques?
(Hint: present your argument with justification and supported with numerical
evidence)
THE END
Al-Mutairi et al., Cogent Economics & Finance (2018), 6: 1468232
https://doi.org/10.1080/23322039.2018.1468232
FINANCIAL ECONOMICS | RESEARCH ARTICLE
Capital budgeting practices by non-financial
companies listed on Kuwait Stock Exchange (KSE)
Abduallah Al-Mutairi1*, Kamal Naser2 and Muna Saeid3
Received: 29 November 2017
Accepted: 19 April 2018
First Published: 09 May 2018
*Corresponding author: Abdullah
Al-Mutairi, Economic and Finance
Department, Gulf University for
Science and Technology, Kuwait
E-mail: mutairi.a@gust.edu.kw
Reviewing editor:
David McMillan, University of Stirling,
USA
Additional information is available at
the end of the article
Abstract: Purpose—The purpose of this study is to investigate various aspects of
capital budgeting techniques adopted by Kuwaiti non-financial companies listed on the
Kuwait Stock Exchange (KSE). Design/methodology/approach—A questionnaire is used
to collect data from Chief Executive Officers (CEOs), Chief Financial Officers (CFOs) and
other managers of manufacturing, service and real estate companies listed on the KSE.
Findings—The result of the analysis unveiled that top management and people who
used the assets are the main sources of capital budgeting ideas. The analysis also
unveiled that net present value and profitability index are the most frequently used
capital budgeting techniques and the choice of the technique is determined by the
nature of the project under assessment, and the academic and professional capabilities
of corporate staff. The analysis further demonstrated that factors such as uncertainty
about the outcome of the capital budgeting techniques and lack of required data and
information to use capital budgeting techniques could prevent Kuwaiti non-financial
companies from adopting capital budgeting techniques. Finally, the analysis disclosed
that non-financial factors such as strategic planning, corporate image, employees’
capabilities and environment protection are taken into consideration when making
capital budgeting decisions. Practical implications—Kuwaiti companies either possess
ABOUT THE AUTHORS
PUBLIC INTEREST STATEMENT
Abdulla Kh. Al-Mutairi (PhD) is an Assistant
Professor in Economics & Finance Department at
Gulf University for Science & Technology. His
research interest lies in investors’ behavior,
educational quality and entrepreneurship.
Kamal Naser (PhD) is Professor of Finance
and Accounting. He published numerous articles
in the areas of accounting, banking and finance
with reference to the Middle Eastern countries.
He taught at several universities in the UK and
the Middle East. He currently works as an economic and financial adviser.
Muna H. Saeid (MBA) works at the English
Department of Arab Open University – Kuwait
branch. Her research interests focus largely on
educational quality and human resource
management.
Capital budgeting assists in making the right
investment decisions that ensures corporate
profitability, financial structure and growth.
Consequently, capital budgeting is of paramount
importance to corporate financial decisions. In this
study, the attempt is made to empirically examine
capital budgeting practices in an emerging, but a
unique, economy like Kuwait. To achieve this
objective, a questionnaire was distributed to a
sample of non-financial companies listed on the
Kuwait Stock exchange. The results of the analysis
revealed that capital budgeting practices are
influenced by the background of corporate staff,
their professional abilities, availability of the required
data and uncertainty about the outcome of
investment appraisal. Kuwaiti companies possess
technology and have the required resources to install
advanced technology to assist them in employing
sophisticated capital budgeting techniques that take
into account inflation and risk. This would ensure
results that are more accurate and minimize
uncertainty about the outcome of the capital
budgeting decisions.
© 2018 The Author(s). This open access article is distributed under a Creative Commons
Attribution (CC-BY) 4.0 license.
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technology or have the required resources to install advanced technology to assist
them in employing sophisticated capital budgeting techniques that take into account
inflation and risk. This would ensure more accurate results and minimize uncertainty
about the outcome of the capital budgeting decisions. Originality/value—This study is
based on primary data collected directly from non-financial companies listed on the
KSE.
Subjects: Finance; Corporate Finance; Investment & Securities; Business; Management and
Accounting
Keywords: Capital budgeting practices; investment appraisal; project valuation; survey;
Kuwait
1. Introduction
Capital budgeting is a planning mechanism used by an organization to make evaluation decisions
on how to allocate resources among investment projects. Capital budgeting techniques assist in
identifying a project feasibility. The importance of capital budgeting stems from the fact that it
creates measurability and emphasizes accountability (Chartered Professional Accountants—
Canada, 2017). Investing in the wrong project means committing corporate resources to a project
without taking into consideration its risks and returns, thereby negatively affecting shareholders’
wealth (O’Sullivan & Sheffrin, 2003). In addition, failure to appraise various capital budgeting
projects effectively will negatively affect corporate competitiveness and this would jeopardize its
survival (Johnson, 1999; Seitz & Ellison, 1999; Thompson & Strickland, 2001). According to the
International Federations of Accounts (2013), to maintain a strong economy and ensure sustainable economic growth, it is important to adopt a systematic, analytical and thorough investment
appraisal approach together with sound judgment. Hence, capital budgeting has been a subject of
growing theoretical and empirical investigations in the finance literature. The central issue in this
literature is to explore the most frequently used techniques and the reason behind using some
techniques more frequently than others (see e.g., Arkovics, 2016; Block, 1997; Gitman & Forrester,
1977; Ryan & Ryan, 2002). Empirical research provided inconclusive evidence regarding the capital
budgeting practices among users; while several studies showed the payback period (PP) as the
most popular technique employed in evaluating projects in developing countries, other studies
demonstrated that Discounted Cash Methods (DCM) such as the Net Present Value (NPV) and
Internal Rate of Return (IRR) are the most frequently practiced capital budgeting techniques.
These findings, however, are questionable in countries such as the Gulf Co-operation Council
(GCC) where their governments possess control over major economic activities and companies,
as well as exempting investors from paying tax. Given that companies and investors are exempted
from paying income tax, tax on dividends or capital gains, this would impact the capital budgeting
process adopted by Kuwaiti companies where the government provides all necessary infrastructure
to businesses in Kuwait and the country has enough liquidity to facilitate making capital budgeting
decisions.
The purpose of this study is to provide empirical evidence about the current capital budgeting practices being used by non-financial listed firms in Kuwait Stock Exchange (KSE). The focus
will be on non-financial institutions since they maintain homogeneous sample and this avoids
difficulties in controlling unsystematic impact. Moreover, financial institutions are mainly concerned with solvency and liquidity and their liabilities are mostly short-term in nature, payable
on demand, have few fixed costs and lower operating leverage than other non-financial
institutions.
The global financial crisis, oil price volatility and the significant progress in information
technology have posed new challenges for corporate financial management in general and
investment decision-makers in particular. Consequently, companies are expected to adjust
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their investment appraisal approaches. Hence, there is a need to examine capital budgeting
practices. This study is a departure from previous studies as it covers different aspects of
investment appraisal techniques employed by companies operating in different sectors of the
economy. The focus of most previous research was mainly on the factors influencing the choice
of using a certain investment appraisal technique or identifying the frequently employed
techniques in one or two economic sectors. In addition, most of the previous studies targeted
EFOs (Chief Financial Officer), while this study targeted the person responsible for making
investment decisions in the company. Hence, the current study is expected to make an
important contribution benefiting both practitioners and academicians. For the former, it
would help to make appropriate investment decisions by using the right capital budgeting
appraisal technique. For the latter, it provides insights about the use of real options and
enables them to identify problems faced by practitioners. This would assist them in conducting
further research and updating the curriculum adopted by business schools operating in Kuwait
and the neighbouring countries who share with Kuwait its level of economic development,
nature of businesses and other economic activities. In addition, the current study is undertaken
in a country with unique features where the government exercises control over economic
activities. It provides an advanced infrastructure and offers financial support to the national
businesses. The country has surplus of financial resources and businesses do not face problems
in securing external funding to start new projects or to finance future growth. The unique
features of Kuwait would affect different aspects of capital budgeting techniques adopted by
the national non-financial companies. Hence, the findings of this study are expected to add a
new dimension to the finance literature and contribute to the limited body of empirical studies
about the capital budgeting appraisal techniques in the GCC region.
The remainder of the study is organized as follows. A brief review of related literature is offered
in the following section. Data collection and methodology are discussed in section three. While the
findings are explained in section four, the conclusion is presented in the final section.
2. Related literature and previous studies
In finance, capital budgeting techniques play a significant role in each business entity since they
impact investment decision-making and project evaluations (Nishat & Haq, 2009). Hence, they
are important to both managerial accounting and financial management (Khamees, Al-Fayoumi,
& Al-Thuneibat, 2010). Chen (2008) considers capital budgeting practices as being fundamental
criteria for company’s investment planning. Capital budgeting is the process of shaping the
future of the firm by allocating its scarce capital resources. Corporate success relies on capital
budgeting decisions since large outlays of funds are required and long-term commitment as well
as firms must ascertain the best way to raise and repay these funds. In empirical literature,
capital budgeting practices have been examined in various countries (see e.g., South Africa;
Brijlal, 2008; Maroyi & Poll, 2012; USA: Gitman & Forrester, 1977; Gitman & Mercurio, 1982; Moore
& Reichert, 1983; Graham & Harvey, 2001; Hogaboam & Shook, 2004; Apap & Masson, 2004;
Colombia: Velez & Nieto, 1986; Canada: Jog & Srivastava, 1995; Chan, 2004; Croatia: Dedi &
Orsag, 2007; UK: Drury & Tayles, 1996, 1997; Pike, 1996; Arnold & Hatzopoulos, 2000; Singapore:
Kester & Tsui, 1998; Kester and Chong, 1998; Asia-Pacific region: Kester et al., 1999; Wong,
Farragher, & Leung, 1987; US and Canada: Jog & Srivastava, 1995; Payne, Heath, & Gale, 1999;
Sudan: Eljelly & AbuIdris, 2001; Sweden: Sandahl & Sjögren, 2003; Daunfeldt & Hartwig, 2012;
Cyprus: Lazaridis, 2004; Australia: Truong, Partington, & Peat, 2008; India: Babu & Sharma,
1996; Verma, Gupta, & Badra, 2009; Arora, 2012; Gupta, 2016; Batra & Verma, 2017; Mohan &
Narwal, 2017; Netherlands and China: Hermes, Smid, & Yao, 2006; Japan: Shinoda, 2010;
Sri Lanka: Ramesh & Nimalathasan, 2011; Jordan: Khamees, Al-Fayoumi, & Al-Thuneibat,
2010; Al-Azawai, 2010; Eastern European: Andor, Mohanty, & Toth, 2015; Pakistan: Nishat &
Haq, 2009; Zubairi, 2008; Malaysia: Abdulsamad & Shaharuddin, 2009 Palestine: El-Daour & Abu
Shaaban, 2014; Brazil: Souza & Lunkes, 2016; Spain: Andrés, Fuente, & Martín, 2015). Previous
studies can be classified into three main areas. In the first area, researchers looked into
investment appraisal techniques most frequently used in practice. In the second area,
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researches attempted to establish a relationship between the use of specific investment
appraisal techniques and the attribute of the firm. In the third area, researchers attempted to
compare the use of various investment appraisal techniques between public and private firms or
across countries. The following section presents a brief review for most of these studies.
2.1. Studies investigating investment appraisal techniques most frequently used in practice
Velez and Nieto (1986) surveyed capital budgeting practices adopted by Colombian firms. They
found investors using discounted methods for investment decisions as they suit the Colombian
economy that experiences a considerably higher rate of inflation and the country’s monetary policy,
which was designed to restrict borrowing. Similarly, Jog and Srivastava (1995) used a survey to
identify the use of capital budgeting practices by large Canadian companies. They found the
discounted cash flow (DCF) methods to be the most frequently used techniques by the surveyed
companies. They noticed a high use of subjectivity and judgment in the estimation of inputs into the
capital budgeting process. Pike (1996) showed that British companies employ more than one
method of investment appraisal. He added that the majority of investors used PP method and
there is a growing interest in employing IRR and NPV. Arnold and Hatzopoulos (2000) also examined
the capital budgeting techniques employed by UK companies and revealed that the majority of
these companies have increasingly adopted advanced methods to enhance their decision making in
their evaluation of new projects. Babu and Sharma (1996) surveyed firms in and around Delhi and
Chandigarh in India. They found that more than 90 per cent of the firms adopted capital budgeting
methods and the majority of them used DCF methods. They also found that the popular investment
appraisal methods are the IRR and the PP used either individually or jointly. An additional study
undertaken in India by Arora (2012) observed that most of the surveyed firms prefer the discounted
PP method and consider it as the most important capital budgeting technique. Arora provided
evidence that major firms in India are utilizing many of the tools of analysis presented in the
financial theory for analysing capital budgeting. In a more recent study, Batra and Verma (2017)
investigated capital budgeting practices in a sample of 77 Indian companies listed on Bombay Stock
Exchange. The researchers found that the surveyed companies adopt capital budgeting practices
described by academic theories. They also found that DCF flows methods (NPV and IRR) together
with risk adjusted sensitivity analysis to be the most frequently used investment appraisal
techniques by the surveyed companies. In a similar line of research, Hogaboam and Shook (2004)
observed that firms prefer the use of DCF techniques, particularly NPV method. They provided
evidence that some big firms employ more sophisticated evaluation methods. Apap and Masson
(2004) surveyed publicly traded utility companies in USA and found that PP, NPV and IRR are the
commonly used investment appraisal techniques. Truong, Partington, and Peat (2008) examined the
capital budgeting practices of Australian listed firms and found NPV, IRR, and PP to be the most
popular evaluation techniques. Nishat and Haq (2009) used a questionnaire survey to identify the
present application of quantitative capital budgeting methods followed by Pakistani firms. They
found that the most popular capital budgeting techniques in Pakistan are NPV and IRR. Khamees
et al. (2010) used a questionnaire and an interview to examine capital budgeting practices by
Jordanian Industrial Corporations (JIC). They found that respondents do not rely on one technique.
JIC give almost equal importance to the discounted and un-DCF methods in evaluating capital
investment projects. They also observed that the most frequently used technique is the profitability
index (PI) followed by the PP. Another study by Al-Azawai (2010) that explored the use of capital
budgeting techniques by Jordanian listed services firms found that they use DCF techniques, as well
as Non-DCF, when assessing capital investment projects. He also found that PP is the most
frequently used capital budgeting technique, followed by NPV, PI, accounting rate of return (ARR),
and IRR. However, Al-Azawai provided evidence that these practices are not widely used by capital
budgeting decision makers of the listed Jordanian services companies since they widely use
subjective judgment. Abdulsamad and Shaharuddin (2009) examined the use of capital budgeting
techniques in publicly listed firms in Malaysia. They found that PP is the most popular technique for
those who do not use DCF technique. Shinoda (2010) surveyed people in charge of capital budgeting
at firms listed on Tokyo Stock Exchange, with a focus on capital budgeting practices. He found that
Japanese firms manage their decision-making by a combination of PP method and NPV methods.
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Shinoda observed that Japanese firms invest in projects in which their investment can be recovered
in a short period. Hence, they tend to adopt the PP. El-Daour and Abu Shaaban (2014) examined the
capital budgeting techniques in Palestinian public corporations in the Gaza Strip. They found that the
Palestinian publicly owned corporations in Gaza strip use the capital budgeting techniques when
selecting investment projects. They also found that the PI is the most frequently used technique,
while the NPV was found to be the least used technique. They recommended that managers
increase the use of the NPV for evaluating proposed investment projects. Andrés, Fuente, and
Martin (2015) explored the use of capital budgeting practices in a sample of 140 non-financial
Spanish companies. They detected that pp was the most frequently used method of capital budgeting. Souza and Lunkes (2016) studied capital budgeting practices in a sample of 51 large Brazilian
companies traded on the Stock Exchange. They reported that companies frequently use the PP, NPV
and the IRR to appraisal investment projects. The surveyed companies showed that they further
conduct sensitivity analyses to assess investment risk. The researchers concluded that companies
tend to adopt more sophisticated techniques at various stage of capital budgeting.
2.2. The relationship between the use of investment appraisal techniques and corporate
attributes
Drury and Tayles (1996) examined the impact of company size on the use of financial appraisal
techniques and the treatment of inflation by UK companies. They noticed that 63% of the large
firms always employ IRR, 50% NPV and 30% always adopt the PP method. They also noticed
86% of the surveyed firms often/always employ the unadjusted payback approach together
with a DCF method. They further observed that non-discounted methods continue to be
employed by both small and large firms. Graham and Harvey (2001) surveyed Chief Financial
Officers (CFOs) about the cost of capital, capital budgeting, and capital structure. They found
that large firms rely heavily on the PV technique and the capital asset pricing model (CAPM),
while small firms use the PP criterion. Grahama and Harveya provided evidence to support the
pecking-order and trade-off capital structure hypotheses but little evidence that executives are
concerned about asset substitution, asymmetric information, transactions costs, free cash
flows, or personal taxes. Zubairi (2008) examined capital budgeting decision-making practices
of Pakistani firms. He found that large sized firms give preference to IRR, while smaller firms
rely more on NPV. He observed that smaller firms are keener in estimating the PP as compared
to larger companies. Zubairi concluded that the firms relying more on debt financing or with
high growth rates give more preference to the NPV technique, while low leveraged and low
growth firms rely more on IRR. Similarly, Nishat and Haq (2009) noticed that small firms in
Pakistan used PP as their main criteria in the evaluation of capital budgeting proposal. They
observed that a single factor CAPM model is used by large firms for ascertaining the cost of
capital. Verma et al. (2009) surveyed CFOs/Chief Executive Officers (CEOs) of manufacturing
companies in India to identify the preferred capital budgeting techniques by these companies.
They found that there is a systematic relationship between company related factors like age of
a company, CEO education/qualification and the capital budgeting method adopted by it.
Ramesh and Nimalathasan (2011) examined the use of capital budgeting techniques by a
sample selected from manufacturing, pharmaceuticals and chemicals, and textile firms listed
on the Colombo Stock Exchange. They found the NPV method to be the most dominant capital
budgeting technique according to the perception of executives from all sectors. They also
found most executives of manufacturing, pharmaceutical and chemical companies prefer the
NPV and IRR methods. Ramesh and Nimalathasan also observed that the executives of the
textile sector prefer the NPV method for evaluating capital budgeting in Sri Lanka. Daunfeldt
and Hartwig (2012) examined the choice of capital budgeting methods used by companies
listed on the Stockholm Stock Exchange. They found that the choice of capital budgeting
methods is influenced by leverage, growth opportunities, dividend pay-out ratios, the choice
of targeted debt ratio, the degree of management ownership, foreign sales, industry, and
individual characteristics of the CEO. Andrés et al. (2015) explored the use of capital budgeting
practices in a sample of 140 non-financial Spanish companies. They found that corporate size,
and industry are the most important determinant of the choice of capital budgeting
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techniques. Gupta (2016) explored the relationship between capital budgeting practices and
the size in a sample of 75 Indian companies. Gupta reported a positive association between the
use of DCF techniques and corporate size.
2.3. Comparison of the use of investment appraisal techniques by public and private firms
and across countries
Eljelly and Abu Idris (2001) examined the capital budgeting techniques in both public and private
sectors in Sudan. They provided evidence that both sectors use capital budgeting techniques. They
noticed that PP is the most frequently used method followed by the IRR among the private sector
firms and the NPV among the public. Hermes et al. (2006) surveyed Dutch and Chinese firms to
compare the use of capital budgeting techniques. They found that Dutch CFOs on average use
more sophisticated capital budgeting techniques than Chinese CFOs do. They also found that the
use of the IRR method does not seem to differ significantly between Dutch and Chinese firms as
well as the use of CAPM as a method of estimating the cost of capital. They concluded that the
difference between Dutch and Chinese firms is smaller than might have been expected based upon
the differences in the level of economic development between both countries. Andor et al. (2015)
surveyed firms’ executives in 10 Central and Eastern Europe (CEE) countries, namely: Bulgaria,
Croatia, Czech Republic, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic, and Slovenia
to explore their capital budgeting practices. They witnessed significant variations in the practices
of large and small/medium firms, and between local firms and firms dominated by multinational
culture. Andor et al. concluded that capital budgeting practices in CEE countries appear to be
influenced mostly by firm size, multinational culture and by inside ownership to a lesser extent.
Mohan and Narwal (2017) provided a review for all research related to capital budgeting practices
they managed to retrieve from their electronic database, and noticed that there is an increase in
DCF together with PP in both developed and developing countries. However, the authors claimed
that there still need for more research about project identification, cash flows estimation and postaudit selected projects.
2.4. Previous studies undertaken in the GCC countries
As far as the GCC region is concerned, few studies have been conducted to examine the capital
budgeting practices (see e.g., Qatar: Alhamoud & Ibrahim, 1997; Mustafa & Hindi, 2010; Kuwait:
Al-Mutairi, Gary, & Tan, 2009; Al-Mutairi & Hasan, 2011; El-Sady, Hamdy, & Sultanova, 2011; United
Arab Emirates (UAE): Ahmed, 2013). A brief review of these studies is offered in the following
section.
Alhamoud and Ibrahim (1997) used a questionnaire survey to identify the capital budgeting
techniques used by Qatari firms. They found insignificant differences among varying sectors in
terms of the utilization of one method over another. They observed that the PP method is the most
commonly used followed by the IRR, PI, NPV and the ARR. Mustafa and Hindi (2010) used a
questionnaire survey to identify the capital budgeting practices employed by the largest firms in
Qatar. They found that Qatari companies in general tend to adopt the DCFs methods, with NPV, PI
and the IRR being the most widely used methods. They also found that the NPV are IRR are the
most frequently used methods, and the PI is the most common method used to rank the different
competing opportunities. Mustafa and Hindi also observed that most of the companies estimate
the cost of capital, and adopt CAPM with inclusion of some extra risk factors.
In Kuwait, Al-Mutairi et al. (2009) used a questionnaire to survey 80 CFOs of Kuwaiti listed firms
to examine the capital budgeting practices. They found that capital budgeting practices vary
depending on firm and management characteristics. They noticed that there is high tendency to
use IRR as a capital budgeting technique for investment decisions making. Another study by AlMutairi and Hasan (2011) to identify current corporate finance practices by Kuwaiti listed and nonlisted firms. They found that the CAPM is in use to estimate the cost of capital. They provided
evidence that weighted average cost of capital is the most popular rate used due to its simplicity.
Also, El-Sady et al. (2011) used a questionnaire to survey listed and unlisted Kuwait companies.
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They found that NPV and PP to be the most popular capital budgeting techniques used to evaluate
capital investment among Kuwaiti companies. They concluded that there is no significant difference between listed and unlisted Kuwaiti corporations in their practices of capital budgeting
techniques.
Ahmed (2013) surveyed a sample of companies listed on Dubai Financial Market (DFM) to explore
capital budgeting methods. He noticed that a sizeable number of UAE companies use capital
budgeting techniques in their capital investment decisions. He also found that the PP, NPV, and IRR
are the most frequently used techniques by most UAE companies. Ahmed observed that other
financial variables are likely to affect the selection of capital budgeting technique such as the firm
size, revenues, profitability, and leverage level.
It is evident from the above brief literature review that a limited number of empirical studies
have been undertaken to explain the capital budgeting practices in the GCC region. This emphasizes the need for additional empirical testing. Hence, it was important to conduct the current
study.
3. Research methodology data collection
As mentioned earlier, the objective of this study is to offer empirical evidence on different aspects
of capital budgeting practices in a sample of services, manufacturing and real estate companies
listed on KSE. To achieve this objective, a questionnaire has been developed in line with previous
studies undertaken in a similar area of research (see e.g., Ahmed, 2013; Alhamoud & Ibrahim,
1997; Al-Mutairi et al., 2009; Babu & Sharma, 1996; Daunfeldt & Hartwig, 2012; Eljelly & Abu Idris,
2001; El-Daour & Abu Shaaban, 2014; El-Sady et al., 2011; Nishat & Haq, 2009; Ramesh &
Nimalathasan, 2011; Shinoda, 2010). Utilizing a questionnaire similar to that used in previous
research is important since it facilitates comparison. However, the questionnaire developed in the
current study is different to those employed in previous studies in that it covers several aspects of
capital budgeting, whereas previous studies mainly focused on the use of capital budgeting
techniques and attempted to establish whether corporate sector and characteristics impact the
choice of their use. The questionnaire consisted of two parts. The first part requested background
information about the respondents; the second part asked respondents to express their level of
agreement with different aspects of capital budgeting on 5-point Likert scale ranging between
strongly disagree and strongly agree. The main purpose of the second part of the questionnaire
was to seek answers to the following research questions:
3.1. Sources of capital budgeting ideas
Capital budgeting is viewed as an important financial management decision. It involves buying
expensive assets to be used for a long time and this affects the future success or otherwise of the
firm. Taking the right investment decision in the process of capital budgeting assists management
and the company in maximizing shareholders wealth. Thus, identifying the right projects is an
extremely important part of the capital budgeting process. It was, therefore important to ask the
following research question.
Research question 1: What are the main sources of capital budgeting ideas?
3.2. Most frequently used capital budgeting techniques
The focus of previous research was on identifying capital budgeting techniques most frequently
used in practice. While in some studies traditional capital budgeting techniques appeared to be the
most frequently employed techniques, in others the DCF techniques were more in use. Other
studies showed a combination between traditional, DCF and advanced techniques. It was, therefore, important to ask the following research question.
Research question 2: Which capital budgeting techniques are more frequently used by the
Kuwaiti non-financial companies?
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3.3. Factors affect the choice of the capital budgeting techniques
Previous studies attempted to establish the relationship between corporate attributes (size, age,
management education, the level of gearing, etc.) and the use of specific capital budgeting
techniques. In this study, the focus is made on simplicity and staff familiarity of the capital
budgeting techniques. This is mainly affected by staff education and experience. This would
shed new light on what determines the use of specific capital budgeting techniques and adds a
new dimension to the existing body of the literature. It was, therefore, important to ask the
following research question.
Research question 3: What are the main factors that affect the choice of the capital
budgeting techniques?
3.4. Obstacles towards using capital budgeting techniques
Previous research ignored obstacles towards employing specific capital budgeting techniques.
Corporate management might be deterred from appraising capital projects due to the difficulty
of collecting the required data to facilitate the analysis and the cost associated with the appraisal.
It is possible that some companies opt not to go through the capital budgeting process since it is
difficult, time consuming and require highly trained staff to undertake it. Other corporate management might choose to avoid appraising investment projects due to the uncertainty about the
outcome of the appraisal. Identifying the main obstacles towards the use of various capital
budgeting techniques assists in findings the means to minimize these obstacles. It was therefore
important to ask the following research question.
Research question 4: What are the obstacles towards using capital budgeting techniques?
3.5. Non-financial factors that affect capital budgeting decisions
Although maximizing profit and shareholder wealth are the main objectives of the firm, corporate
management may consider non-financial factors when making capital budgeting decisions.
Kuwaiti companies would consider strategic planning, social responsibility, protecting environment
and maintaining employee morale are factors that would affect capital budgeting decisions and
corporate image. It was therefore important to ask the following research question.
Research question 5: What are the non-financial factors that affect capital budgeting
decisions?
3.6. Pilot Study and the distribution of the questionnaire
To increase validity and to ensure its simplicity, understandability and the suitability of the
respondents, the questionnaire was piloted to a group of investors in KSE who provided valuable
suggestions to enhance participation. The piloted investors’ views helped in shortening the questionnaire and improved the quality of the translated Arabic version. Undoubtedly, this step ensured
a relatively high response rate. After piloting the questionnaire and during the period between
June and December 2016, the researchers distributed a questionnaire to all services, manufacturing and real estate companies listed on the KSE. The covering letter of the questionnaire explained
the aim of collecting the data included the questionnaire. The respondents were assured that the
collected data will be solely used to conduct scientific research and their anonymity is guaranteed.
The questionnaire did not ask any information about the names of respondents or their respective
companies. The respondents were only asked to identify their job title. A summary of their
response is presented in Table 1.
The questionnaires were then entered in an SPSS file for analysis. Cronbach’s alpha was used to
measure the internal consistency of the collected data. Descriptive statistics have been employed
to shed some light on the respondents and their response to various aspects of capital budgeting
techniques. To identify possible differences in the respondents’ answers to the questions included
in the questionnaire due to their characteristics, Kruskal–Wallis U test was performed.
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Table 1. Respondents response rate
Sector
Number of targeted
companies
Number of companies
responded
Response rate (%)
Services
60
35
58
Manufacturing
29
18
62
Real estate
Total
41
25
61
130
78
60
4. Findings
To measure the internal consistency (reliability) of the collected data, Cronbach’s alpha (α) was
executed and touched 0.854. In general, a commonly acceptable Cronbach’s alpha (α) is ≥ 0.70.
4.1. Respondents background
Analysis of the collected data disclosed that the average age of the companies where the
respondents’ work is 30 years. Companies’ ages ranged between 7 and 57 years. Table 2
summarizes the main characteristics of the respondents who took part in the questionnaire. It can
Table 2. Respondents and business backgrounds
Frequency
Percent
Kuwaiti
38
48.7
Male
64
82.1
Non-Kuwaiti
40
51.3
Female
14
17.9
Total
78
100.0
Total
78
100.0
10
12.8
Nationality
Percent
Gender
Age
Less than 25 years old
Frequency
Last academic qualification
1
1.3
Diploma
From 26 to 35
23
29.5
Bachelor
38
48.7
From 36 to 50
42
53.8
Master level
23
29.5
More than 50 years old
12
15.4
Ph.D.
7
9.0
Total
78
100.0
Total
78
100.0
18
23.1
Major
Business
Industry type
22
28.2
Manufacturing
Accounting
15
19.2
Service
35
44.9
Finance
20
25.7
Real Estate
25
32.0
Others
21
26.9
Total
78
100.0
Total
78
100.0
16
20.5
Level of occupation
Chief Financial Officer
Level of experience
35
44.9
Less than 3 years
Chief Executive Officer
28
35.9
From 3 to 10
28
35.9
Others
15
19.2
From 11 to 15
22
28.2
Total
78
100.0
More than 15 years
12
15.4
Total
78
100.0
Average annual number of capital budgeting
projects your company considers
Your company’s annual average capital budgeting
(Kuwaiti Dinar)
1–3
Less than 1 million
13
16.7
8
10.3
4–10
20
25.6
1–5 1 million
18
23.1
11–20
30
38.5
6–10 1 million
25
32.1
More than 20
15
19.2
More than 10 million
26
33.3
Total
78
100.0
Total
77
98.7
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be witnessed from the table that 51% of the respondents are non-Kuwaitis and the vast majority
(82%) are males. This reflects the features of Kuwaiti society where males dominate major business
activities in the country and occupy high managerial positions. In addition, the table reveals that
more than 80% of respondents are either CEOs or CFOs and fairly represent the services, manufacturing and real estate sectors. Most of them (73%) have academic qualifications in business related
studies (accounting, business and finance) and more than 85% of them hold university academic
qualifications. The table further showed almost 44% of respondents have more than 10 years of
work experience. More than 55% of respondents indicated that their companies embark annually on
more than 10 capital investment projects and more than 65% of the respondents claimed that their
companies’ annual average capital budgeting is more than 6 million Kuwaiti Dinars.
4.2. Kuwaiti companies sources of capital budgeting ideas
The respondents were asked to identify the sources of capital budgeting project ideas in their
companies. The result of their answer is summarized in Table 3. Although the table shows that all
ideas included in the questionnaire are considered to be good sources of capital budgeting as
reflected by the median, the most important source of capital projects ideas was top management, followed by the people who used the assets. Other sources that appeared in the questionnaire seem to be less important sources of capital budgeting ideas. This result is not surprising
since most of the capital budgeting decisions by Kuwaiti companies are mainly taken by top
management. Even if the people who use the assets initiate some capital budgeting ideas, the
final decision about whether to invest is still taken by top management.
4.3. Capital budgeting techniques employed by Kuwaiti companies
The respondents were asked to specify the technique(s) frequently employed when making capital
budgeting decisions. The result of their answers is presented in Table 4. The table demonstrates that
all capital budgeting techniques listed in the questionnaire are used by the Kuwaiti companies as
mirrored by the resulted median. This result is in line with Drury and Tayles (1996) and Pike (1996)
who found that British companies employ more than one method of investment appraisal. Arora
(2012) also revealed that most Indian firms surveyed in his study utilize many of the capital
budgeting methods. Furthermore, Khamees et al. (2010) and Al-Azawai (2010) noticed that
Table 3. Sources of capital budgeting ideas
The people who use
the assets
Mean
Median
St.
Deviation
Minimum
Maximum
Rank
based on
the mean
3.94
4.00
1.049
1
5
2
Top management
4.06
4.00
1.049
1
5
1
Marketing people
3.37
4.00
1.229
1
5
4
Brainstorming groups
3.38
4.00
1.176
1
5
3
Table 4. Capital budgeting techniques employed by Kuwaiti companies
Mean
Median
St.
Deviation
Minimum
Maximum
Rank
based on
the mean
Accounting rate of return
3.71
4.00
1.186
1
5
3
Payback period
3.62
4.00
1.096
1
5
5
Net present value
3.83
4.00
1.144
1
5
1
Profitability index
3.81
4.00
1.064
1
5
2
Internal rate of return
3.71
4.00
1.141
1
5
3
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industrial and services companies in Jordan rely on more than one investment appraisal technique
and contended that they almost assigned equal importance to traditional and DCF techniques. The
mean, however, illustrated that the NPV is the most frequently used capital budgeting technique
followed by the PI. The result is predictable since after calculating the NPV, it is easy to obtain the PI
for the appraised project and both give the same result. Consequently, the respective mean of each
of the techniques are almost identical. What attracts attention in the table is that the DCF techniques are most frequently employed by Kuwaiti companies listed on the KSE. The result is consistent
with results reported by Alhamoud and Ibrahim (1997) and Al-Azawai (2010). These studies have
been undertaken in three Arab countries (Qatar, Jordan and Palestine) and reported both NPV and PI
as the most frequently used capital budgeting techniques. Another study undertaken by El-Daour
and Abu Shaaban (2014) showed that while PI is the most frequently used investment appraisal
technique in Palestine, whereas, NPV appeared to be the least used technique. The result is, however,
partially consistent with Babu and Sharma (1996), Apap and Masson (2004) and Truong et al. (2008)
who demonstrated that PP, NPV and IRR are the most widely used investment appraisal techniques
among utility companies in South Africa. The result is also partially consistent with Eljelly and Abu
Idris (2001) who observed that NPV frequently used by public companies in Sudan. Similarly, Shinoda
(2010) showed that Japanese companies frequently use NPV and PP methods. However, Arora
(2012) found the discounted PP to be the most popular investment appraisal technique employed
by Indian companies. Eljelly and Abu Idris (2001) found PP followed by the IRR to be used more
frequently by private companies in Sudan. Ramesh and Nimalathasan (2011) surveyed the use of
capital budgeting techniques in the manufacturing, pharmaceutical and chemicals and textile
companies listed on Colombo Stock Exchange and detected that NPV the most frequently used
technique by companies from all sectors. Yet, the result is inconsistent with Arnold and Hatzopoulos
(2000), Hogaboam and Shook (2004) and Hermes et al. (2006) who conducted their studies in
developed countries and found that the companies operating in these countries use more sophisticated investment appraisal techniques than the traditional and DCS ones. What attracts attention
is the result appeared in this study is inconsistent with Al-Mutairi et al. (2009) and El-Sady et al.
(2011) who conducted their studies in Kuwait. The former publicized IRR as the most frequently used
investment appraisal technique, whereas the latter pointed to the NPV and PP. Inconsistent results
might be due to the time difference, the surveyed companies and the respondents in the survey.
Companies are expected to change their choice of investment appraisal techniques as time goes by.
This study targeted services, manufacturing and real estate companies, while the other did not
specify the sector(s) of the targeted companies. Finally, while those who took part in this study were
CEOs, CFOs and other, participation in the other two studies was restricted to CFOs.
4.4. The choice of capital budgeting techniques
Table 5 sheds some light on the main factors that influence Kuwaiti companies’ choice of capital
budgeting techniques. The table highlights that all factors incorporated in the questionnaire are
viewed as being important when choosing capital budgeting techniques as echoed by the reported
median. Yet, the table illustrated that Kuwaiti companies’ choice of capital budgeting techniques is
mainly influenced by the nature of the project under assessment. The choice is also influenced by
the academic and professional capabilities of corporate staff. The simplicity of the capital budgeting technique does not seem to affect the choice of its use. The respondents further do not believe
that any adopted capital budgeting technique will serve the same purpose. It is rational to see
association between the nature of the project under consideration and the adopted capital
budgeting technique. Some projects require specific budgeting appraisal techniques and the staff
should have the required knowledge and expertise to adopt it. To ensure the effectiveness of the
adopted capital budgeting techniques, the Kuwaiti non-financial companies can train a specialized
team within the finance department on how to use sophisticated computer programs containing
various capital budgeting techniques including those that take into account the levels of inflation
and depending on risk. The team can then adopt the appropriate techniques regardless of their
difficulty. This would result in more effective capital budgeting appraisal. This result is different
from what was reported by Zubairi (2008) who indicated that Pakistani companies relaying on debt
financing or realizing high growth rates tend to employ NPV technique, whereas low leveraged and
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Table 5. Choice of using capital budgeting technique
Mean
Median
St.
deviation
Minimum
Maximum
Rank
based on
the mean
Method’s Simplicity
3.45
4.00
1.142
1
5
5
Method’s application cost
3.58
4.00
1.068
1
5
3
Any method used will
serve the purpose
3.45
4.00
1.241
1
5
5
The nature of the project
under assessment
3.92
4.00

.990
1
5
1
Time required to adopt the
method
3.57
4.00
1.229
1
5
4
Staff academic and
professional capabilities
3.77
4.00
1.111
1
5
2
low growth rate companies use IRR technique more frequently. Verma et al. (2009) documented
that the choice of using specific capital budgeting technique is influenced by corporate age and
CFOs/CEOs education and qualifications. Maroyi and Poll (2012) indicated that the main reason for
using a specific investment appraisal technique was its superiority. Daunfeldt and Hartwig (2012)
found that the choice of capital budgeting techniques is influenced by leverage, growth opportunities, dividend pay-out ratios, the choice of targeted debt ratio, the degree of management
ownership, foreign sales, industry, and individual characteristics of the CEO. Ahmad (2013) demonstrated that the selection of investment appraisal techniques by companies listed on DFM is
influenced corporate size, revenue, profitability and leverage. Andor et al. (2015) who looked into
a sample from 10 Central and East European countries noticed that while corporate size and
multinational culture affect the choice of investment appraisal techniques, but inside corporate
ownership affect the choice but at a lower degree.
4.5. Obstacles towards the use of capital budgeting
The respondents were asked to identify possible obstacles that prevent them from using capital
budgeting techniques. A summary of their answers are presented in Table 6. According to the
table, the respondents agreed with almost all possible obstacles towards the use of capital
budgeting contained in the questionnaire as reflected by the reported median except for lack of
required experience to use capital budgeting techniques. This is anticipated since the vast
majority of the respondents are academically qualified and have enough experience to adopt
any capital budgeting technique. However, the respondents believe that factors such as uncertainty about the outcome of the capital budgeting techniques and lack of required data and
information to use capital budgeting techniques may demotivate Kuwaiti companies from
adopting capital budgeting techniques. In fact, uncertainty about the outcome of the capital
budgeting appraisal is mainly due to lack of information. Companies can benefit from the
revolution in information technology together with their marketing, research and development
departments to collect data related to various capital budgeting projects. This would assist in
making effective capital budgeting decisions.
4.6. Non-financial factors affect the use of capital budgeting techniques
Although there was a great emphasis on the financial aspects in the literature of capital
budgeting, researchers such as Adler (2000), Meredith and Mantel (2000), Mohamed and
McCowan (2001), and Love, Holt, Shen, Li, and Irani (2002) highlighted the need to consider
financial and non-financial aspects when making capital budgeting decisions. These researchers believe that capital budgeting decisions is sophisticated and they go beyond financial
aspects. Hence, the respondents were asked to ascertain whether non-financial factors are
likely to influence the use of capital budgeting techniques.
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Table 6. Obstacles towards using capital budgeting techniques
Mean
Median
Standard
Deviation
Minimum
Maximum
Rank
based on
the mean
If management is not
convinced with capital
budgeting appraisal
3.60
4.00
1.199
1
5
3
Uncertainty about the
outcome of the appraisal
3.82
4.00
1.170
1
5
1
Investment appraisal
techniques are time
consuming
3.32
4.00
1.075
1
5
6
The cost associated with
the use of capital
budgeting techniques
3.44
4.00
1.100
1
5
4
Lack of required
experience to use capital
budgeting techniques
3.40
3.00
1.283
1
5
5
Lack of required data and
information to use capital
budgeting techniques
3.63
4.00
1.260
1
5
2
As appeared in Table 7, the respondents state that non-financial factors such as strategic planning,
corporate image, employees’ capabilities and protecting environment are considered when making
capital budgeting decisions. This result is partially in line with the outcome of research undertaken Batra
and Verma (2017) who showed that most of the companies covered in their study pay attention to the
nonfinancial factors when they make capital budgeting decisions. The decisions take into account
corporate objectives and strategy together with customer market/demand analysis. They also take into
account availability of raw material, power, manpower, suitable project location, technology, employees and public safety, necessity to maintain existing product lines, meeting competition, government
legislations and environmental factors. The result is also partially consistent with Petty, Scott, and Bird
(1975) who reported corporate image and protecting environment as important non-financial factors
influencing capital budgeting decisions. Given that corporate sustainability strategy (corporate social
responsibility) is becoming an important component its competitiveness, it is not surprising to find
Kuwaiti non-financial companies considering non-financial factors when making capital budgeting
appraisal decisions. To improve its competitiveness position and increase its market share, corporate
strategy must take into account social, environmental, ethical and consumer concerns. This reality
becomes more important in a small society like Kuwait where information about corporate social
Table 7. Non-financial factors affect capital budgeting
Mean
Median
Standard
Deviation
Minimum
Maximum
Rank
based on
the mean
Strategic planning
4.01
4
0.919
1
5
1
Social responsibilities
3.53
4
0.99
1
5
6
Employees capabilities
3.72
4
1.115
1
5
3
Employees responsibilities
3.56
4
1.064
1
5
5
7
Employees morale
3.41
4
0.999
1
5
Protecting environment
3.68
4
1.087
1
5
4
Corporate image
3.86
4
1.066
1
5
2
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responsibility can be quickly spread through social an effective use of social media and the gatherings
(dewaniat) held regularly among Kuwaitis. Consequently, Kuwaiti companies are expected to pay more
attention to non-financial factors when making capital budgeting decisions.
5. Differences among the respondents about the use of different capital budgeting
techniques
To establish whether differences in the respondents’ characteristics have any effect on the use of
capital budgeting techniques, Kruskal–Wallis test was performed and the result is reported in
Table 8.
Respondents’ characteristics such as age, last academic qualifications, their academic
major and the industry where they work were all tested. It is evident from the table that
the respondents were consistent about the use of capital budgeting techniques except few
cases. The respondents showed significant differences in using PI and IRR. These two
techniques are more difficult than others and they can be estimated by using some software
packages. New and young graduates are more technology literate and they are expected to
utilize their skills to estimate the IRR. Respondents’ last academic qualifications appeared to
correlate with significant differences with the use of the IRR. Once again, IRR is relatively
difficult to calculate and it requires possessing some computing skills. Postgraduates are
expected to have advanced technological knowledge, skills expertise to enable them to
estimate the IRR more than the undergraduate. Finally, significant differences appeared
between industry and the use of PP and IRR. Given that the respondents represent three
different industries and the companies they represent vary in their nature and the size of the
targeted capital projects, it is normal to witness significant differences in the capital
budgeting technique that they adopt.
6. Conclusion
In this study, the attempt is made to explore different aspects of capital budgeting practices of
non-financial companies listed on KSE. The study looked at the sources of capital budgeting
ideas, capital budgeting techniques most frequently used, what determines the choice of the
capital budgeting technique, obstacles towards using capital budgeting techniques and nonfinancial aspects that might affect capital budgeting decisions. To achieve the objectives of the
study, during the period between June and December 2016, a questionnaire was distributed to
all services, manufacturing and real estate companies listed on the KSE. 60% of these companies completed the questionnaire. The result of the analysis revealed that top management and
people who used the assets are the main sources of capital budgeting ideas. The analysis also
revealed that NPV and PI are the most frequently used capital budgeting techniques and the
choice of the technique is determined by the nature of the project under assessment and the
academic and professional capabilities of corporate staff. The analysis further demonstrated
that factors such as uncertainty about the outcome of the capital budgeting techniques and
lack of required data and information to use capital budgeting techniques could prevent the
Kuwaiti non-financial companies from adopting capital budgeting techniques. Furthermore, the
analysis disclosed that non-financial factors such as strategic planning, corporate image,
employees’ capabilities and environment protection are taken into consideration when making
capital budgeting decisions. Finally, Kuwaiti companies either possess technology or have the
required resources to install advanced technology to assist them in employing sophisticated
capital budgeting techniques that take into account inflation and risk. The companies should
make use the detailed information published on the net to collect necessary data about various
investment opportunities. This would ensure results that are more accurate and minimize
uncertainty about the outcome of the capital budgeting decisions and encourage companies
to used capital budgeting techniques more frequently. Although an additional study on capital
budgeting sheds more light on the gap between theory and practices and assists both academics and practitioners to benefit from this study, the surveyed sample in the current study is
not fully representative since it covers only 3 out of 14 industries that form KSE. In addition, the
Page 14 of 18
χ
2.721
5.59
8.517
Net Present Value
Internal Rate of Return
11.17
2.51
2
Payback Period
Profitability Index
Accounting Rate of Return
Investment appraisal
techniques
Table 8. Kruskal Wallis test
Age
Sig.
0.036
0.133
0.437
0.011
0.474
χ
11.21
4.331
1.303
3.64
3.72
2
0.011
0.228
0.728
0.303
0.294
Sig.
Last Academic Qualification
χ
4.96
4.26
2.41
3.19
0.13
2
Major
Sig.
0.175
0.235
0.492
0.363
0.989
χ
2.93
12.72
1.41
8.23
0.005
0.703
0.041
0.403
0.543
Sig.
Industry type
2.15
2
Al-Mutairi et al., Cogent Economics & Finance (2018), 6: 1468232
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focus of the current study was on companies listed on KSE. To give a complete picture about
capital budgeting practices in Kuwait, unlisted companies need to be surveyed in future
research. Thus, generalizations of the obtained results should be made with caution.
Moreover, to increase the response rate, the questionnaire did not include questions about
the company’s name and its financial characteristics. Availability of such information would
form a basis to studying the effect of various corporate characteristics on capital budgeting
practices.
Acknowledgement
The views and opinions expressed in this article are those
of the authors and do not necessarily reflect those of their
employers.
Funding
This work was supported by the Kuwait Foundation for the
Advancement of Science (KFAS) [P115-17IF-02].
Authors details
Abduallah Al-Mutairi1
E-mail: mutairi.a@gust.edu.kw
Kamal Naser2
E-mail: profnaser@yahoo.co.uk
ORCID ID: http://orcid.org/0000-0003-2691-0291
Muna Saeid3
E-mail: Muna343@gmail.com
1
Economic and Finance Department, Gulf University for
Science and Technology, Kuwait.
2
Financial Advisor, Kuwait Fund, Kuwait.
3
English Department, Arab Open University, Kuwait
Branch, Kuwait.
Citation information
Cite this article as: Capital budgeting practices by nonfinancial companies listed on Kuwait Stock Exchange
(KSE), Abdullah Al-Mutairi, Kamal Naser & Muna Saeid,
Cogent Economics & Finance (2018), 6: 1468232.
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