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- Project appraisal: a reflectionPublication . Moutinho, Nuno; Mouta, HelenaWe present project evaluation approaches that should be used as a basis for decision. We try to find what aspects must be taken into account in project analysis, acknowledging the need to consider intangible aspects that are impossible to measure and that lead to subjective analysis to project evaluators. We also wish to understand if firms have adequate tools and methods that incorporate and quantify all non financial aspects. We have identified several other aspects that influence projects’ evaluation and decisionmaking. This is not a mere financial activity, but involves a diversity of behavioural and organizational factors, and business perception, which should be adequately adjusted to invest with success.
- Project appraisal: a reflectionPublication . Moutinho, Nuno; Mouta, HelenaWe present project evaluation approaches that should be used as a basis for decision. We try to fi nd what aspects must be taken into account in project analysis, acknowledging the need to consider intangible aspects that are impossible to measure and that lead to subjective analysis to project evaluators. We also wish to understand if fi rms have adequate tools and methods that incorporate and quantify all non nancial aspects. We have identi ed several other aspects that infl uence projects' evaluation and decision-making. This is not a mere fi nancial activity, but involves a diversity of behavioural and organizational factors, and business perception, which should be adequately adjusted to invest with success.
- The role of non-financial aspects in project appraisal –the practice of portuguese firmsPublication . Moutinho, Nuno; Lopes, M.D.S.Project appraisal has traditionally put its emphasis on the financial aspects of projects,mainly the quantitative ones, underestimating other areas of analyses where factors of a qualitative nature, intangible and subjective, may also affect the implementation and value of projects. Non financial evaluation supply information about less tangible factors and is expected to identify competitive advantages and risks that financial techniques cannot capture. In general there are few empirical studies addressing these other aspects. Most surveys are addressed to the financial techniques. With our work we aimed to identify the importance of non financial aspects at the decision making process and the evaluation of projects, in practice, in particular to investigate the practices of Portuguese companies in this field, that is: investigate to what extent are non financial aspects taken into account in investment decisions; which non financial aspects are most relevant; which procedures are adopted to minimize the non financial risks; and which evaluation methods are used to incorporate non financial elements at the decision-making process. The results of our study support the importance of incorporating non financial aspects into the appraisal of projects, and show how some of those aspects have greater relevance than that attributed to the financial elements. The study also points to the strategic and technical aspects of projects as the most relevant non financial factors considered by Portuguese firms. The financial analysis, according to the empirical data collected, comes only in third place of importance, both at the appraisal and at the decision-making stages. Commercial factors, showed similar relevance to the financial ones. This work also allows us to differentiate the importance of the different areas of analysis, and the way this analysis is done, according to the characteristics of the company and the project, the company’s administration and the project manager. In this way, we find that, type of industry, size and debt of the company, type, duration, size and risk of the project, the academic background of the chairman of the board, and of the project manager, and also the tenure of the board’s chairman, are among the factors that have the most influence in the importance attributed by firms to the different areas of project appraisal.
- Decision-making process in investment projectsPublication . Moutinho, NunoWe present projects evaluation approaches in what decision should be based. We try to understand what we have to take into account in a project analysis, knowing that we have to consider much unmeasured aspects, like non non-financial areas. We verify how all aspects are used and analysed in the project appraisal. We also desire to understand if companies have adequate tools and methods to correctly analyse and to take decisions in a project evaluation. In this study we identify several aspects that are able to influence investment projects evaluation and decision-making process. An investment is not a mere financial activity, but involves a diversity of behavioural factors, organizational and business perception, which should be properly adjusted to invest with success. Investment decision-making should take into account non financial aspects, mainly, through some evaluation’s format and method. As non financial aspects have an intangible nature, they are difficult to estimate, and cause a subjective analysis to project evaluators, it is important to develop an objective and tangible method that incorporates and quantify all non financial aspects together in project evaluation.
- Investment projects: evaluation tools and methodsPublication . Moutinho, Nuno; Mouta, HelenaGiven the need to study di erent areas of analysis during the investment decision process, it is imperative to know which tools and methods are used by companies to assess various nancial and non- nancial aspects. As regards tools, we find that firms use checklists of analysis for non- fi nancial aspects, whereas they use their past experience in risk assessment, gathered from other projects. Records of past evaluation tend to be maintained in companies and those that use external advisors to evaluate projects tend to perform political analysis. As for the methods, companies use the identi cation of risk factors and assessment of ef fects and risk probabilities, the discussion and assessment of favorable and unfavorable factors to the project's execution, a coordinated analysis of fi nancial and non- financial aspects, and the creation of lists of risk indices, attributing a qualitative weight to each item. We have also analyzed the relationship between these tools and methods and each area of analysis in project evaluation.
- Project appraisal: a refectionPublication . Moutinho, Nuno; Mouta, HelenaWe present project evaluation approaches that should be used as a basis for decision. We try to fi nd what aspects must be taken into account in project analysis, acknowledging the need to consider intangible aspects that are impossible to measure and that lead to subjective analysis to project evaluators. We also wish to understand if fi rms have adequate tools and methods that incorporate and quantify all non nancial aspects. We have identi ed several other aspects that infl uence projects' evaluation and decision-making. This is not a mere fi nancial activity, but involves a diversity of behavioural and organizational factors, and business perception, which should be adequately adjusted to invest with success.
- Decision-making process in investment projectsPublication . Moutinho, NunoWe present projects evaluation approaches in what decision should be based. We try to understand what we have to take into account in a project analysis, knowing that we have to consider much unmeasured aspects, like non non-financial areas. We verify how all aspects are used and analysed in the project appraisal. We also desire to understand if companies have adequate tools and methods to correctly analyse and to take decisions in a project evaluation. In this study we identify several aspects that are able to influence investment projects evaluation and decision-making process. An investment is not a mere financial activity, but involves a diversity of behavioural factors, organizational and business perception, which should be properly adjusted to invest with success. Investment decision-making should take into account non financial aspects, mainly, through some evaluation’s format and method. As non financial aspects have an intangible nature, they are difficult to estimate, and cause a subjective analysis to project evaluators, it is important to develop an objective and tangible method that incorporates and quantify all non financial aspects together in project evaluation.
- Investment projects: evaluation tools and methodsPublication . Moutinho, Nuno; Mouta, HelenaGiven the need to study di erent areas of analysis during the investment decision process, it is imperative to know which tools and methods are used by companies to assess various financial and non- financial aspects. As regards tools, we find that fi rms use checklists of analysis for non- financial aspects, whereas they use their past experience in risk assessment, gathered from other projects. Records of past evaluation tend to be maintained in companies and those that use external advisors to evaluate projects tend to perform political analysis. As for the methods, companies use the identi cation of risk factors and assessment of eff ects and risk probabilities, the discussion and assessment of favorable and unfavorable factors to the project's execution, a coordinated analysis of nancial and non- nancial aspects, and the creation of lists of risk indices, attributing a qualitative weight to each item. We have also analyzed the relationship between these tools and methods and each area of analysis in project evaluation.
- Project evaluation: main characteristicsPublication . Moutinho, NunoThe evaluation process of real investment projects must consider not only the traditional financial approach, but also non-financial aspects. Non financial analysis can provide additional relevant information about projects. We investigate financial and non-financial areas most relevant in project appraisal. We present main critical success factors and areas of analysis that lead to the perception of project success. Finally, companies are segmented to verify its financial and nonfinancial practices, considering industries, type of project, size and duration of the project. The results show that there are other factors in addition to financial that affect the investment decision with great importance, specifically the strategic, technical and commercial areas. Perceived success of a project is related to the consideration of strategic, political and human resources aspects in its evaluation. There is a greater perception of success when companies attach greater importance to financial and commercial aspects in project appraisal. The existence of many financial and strategic factors is associated with a greater perceived success of the project. We found that there is a greater perception of success in companies with larger projects, when the chairman of the board has higher tenure and when the project manager has higher degree and has variable reward.