An Empirical Study on the Capital Budgeting Practices: Evidences from RSEBL Listed And DHI Owned Companies

Hita Nath Dhakal; Budha Raj Kafley; Ankit Bhujel; Bhim Bahdur Subba; Jamayang Chetsho

doi:10.17102/bjbm.v7.1

An Empirical Study on the Capital Budgeting Practices: Evidences from RSEBL Listed And DHI Owned Companies

Authors

Hita Nath Dhakal Lecturer, Gedu College of Business Studies, Royal University of Bhutan
Budha Raj Kafley Alumni, Gedu College of Business Studies, Royal University of Bhutan
Ankit Bhujel Alumni, Gedu College of Business Studies, Royal University of Bhutan
Bhim Bahdur Subba Alumni, Gedu College of Business Studies, Royal University of Bhutan
Jamayang Chetsho Alumni, Gedu College of Business Studies, Royal University of Bhutan

DOI:

https://doi.org/10.17102/bjbm.v7.1

Keywords:

Capital Budgeting, Profitability Index, RSEBL, DHI, risk assessment

Abstract

Long-term investment decisions are one of the most complicated financial decisions and the need for investigation of its practices has become very crucial in Bhutan. It is evident from the total sample size of 29 RSEBL (Royal Securities Exchange of Bhutan) listed companies and DHI (Druk Holding and Investments) owned companies that they mostly prefer PI (Profitability Index) in capital budgeting decision-making in Bhutan. The findings from this study also reveals that, the project risk assessment tools such as scenario analysis and real options are the dominant approaches among RSEBL listed and DHI owned companies.

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Published

2024-05-30

How to Cite

Dhakal, H. N., Kafley, B. R., Bhujel, A., Subba, B. B., & Chetsho, J. (2024). An Empirical Study on the Capital Budgeting Practices: Evidences from RSEBL Listed And DHI Owned Companies. Bhutan Journal of Business and Management, 7(1), 22. https://doi.org/10.17102/bjbm.v7.1