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The relative importance of financial and non-financial analysis in project evaluation – evidence from portuguese firms

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Resumo: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. We have done a survey, aimed at the non financial aspects of projects, which is the base of two papers. In this first paper, we aimed to identify the importance of non financial aspects at the decision making process and the evaluation of projects, and in particular to investigate the practices of Portuguese companies in this field. 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.
Autores principais:Moutinho, Nuno
Outros Autores:Lopes, M.D.S.
Assunto:Investment projects Evaluation Financial analysis Non-financial analysis
Ano:2011
País:Portugal
Tipo de documento:comunicação em conferência
Tipo de acesso:acesso aberto
Instituição associada:Instituto Politécnico de Bragança
Idioma:português
Origem:Biblioteca Digital do IPB
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author Moutinho, Nuno
author2 Lopes, M.D.S.
author2_role author
author_facet Moutinho, Nuno
Lopes, M.D.S.
author_role author
contributor_name_str_mv Biblioteca Digital do IPB
country_str PT
creators_json_txt [{\"Person.name\":\"Moutinho, Nuno\",\"Person.identifier.orcid\":\"0000-0002-9242-8324\"},{\"Person.name\":\"Lopes, M.D.S.\"}]
datacite.contributors.contributor.contributorName.fl_str_mv Biblioteca Digital do IPB
datacite.creators.creator.creatorName.fl_str_mv Moutinho, Nuno
Lopes, M.D.S.
datacite.date.Accepted.fl_str_mv 2011-01-01T00:00:00Z
datacite.date.available.fl_str_mv 2014-09-25T11:24:18Z
datacite.date.embargoed.fl_str_mv 2014-09-25T11:24:18Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_abf2
datacite.subjects.subject.fl_str_mv Investment projects
Evaluation
Financial analysis
Non-financial analysis
datacite.titles.title.fl_str_mv The relative importance of financial and non-financial analysis in project evaluation – evidence from portuguese firms
dc.contributor.none.fl_str_mv Biblioteca Digital do IPB
dc.creator.none.fl_str_mv Moutinho, Nuno
Lopes, M.D.S.
dc.date.Accepted.fl_str_mv 2011-01-01T00:00:00Z
dc.date.available.fl_str_mv 2014-09-25T11:24:18Z
dc.date.embargoed.fl_str_mv 2014-09-25T11:24:18Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://hdl.handle.net/10198/10590
dc.language.none.fl_str_mv por
dc.publisher.none.fl_str_mv Financial Management Association International
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.subject.none.fl_str_mv Investment projects
Evaluation
Financial analysis
Non-financial analysis
dc.title.fl_str_mv The relative importance of financial and non-financial analysis in project evaluation – evidence from portuguese firms
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_5794
description 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. We have done a survey, aimed at the non financial aspects of projects, which is the base of two papers. In this first paper, we aimed to identify the importance of non financial aspects at the decision making process and the evaluation of projects, and in particular to investigate the practices of Portuguese companies in this field. 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.
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eu_rights_str_mv openAccess
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instname_str Instituto Politécnico de Bragança
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network_name_str Biblioteca Digital do IPB
oai_identifier_str oai:bibliotecadigital.ipb.pt:10198/10590
organization_str_mv urn:organizationAcronym:ipb
person_str_mv Moutinho, Nuno
Moutinho, Nuno
https://www.ciencia-id.pt/CA1B-4924-2BBA
CA1B-4924-2BBA
http://orcid.org/0000-0002-9242-8324
0000-0002-9242-8324
Lopes, M.D.S.
publishDate 2011
publisher.none.fl_str_mv Financial Management Association International
reponame_str Biblioteca Digital do IPB
repository_id_str urn:repositoryAcronym:ipb
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spelling porFinancial Management Association InternationalporProject 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. We have done a survey, aimed at the non financial aspects of projects, which is the base of two papers. In this first paper, we aimed to identify the importance of non financial aspects at the decision making process and the evaluation of projects, and in particular to investigate the practices of Portuguese companies in this field. 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.application/pdfporThe relative importance of financial and non-financial analysis in project evaluation – evidence from portuguese firmsPersonalMoutinho, NunoDSpacehttp://dspace.org/items/66a63650-20a8-4110-a9f7-7f45fa84c14bDSpacehttp://dspace.org/items/66a63650-20a8-4110-a9f7-7f45fa84c14bMoutinhoNunoCiência IDhttps://www.ciencia-id.ptCA1B-4924-2BBAORCIDhttp://orcid.org0000-0002-9242-8324Scopus Author IDhttps://www.scopus.com57742333300Lopes, M.D.S.HostingInstitutionOrganizationalBiblioteca Digital do IPBe-mailmailto:dspace@ipb.ptdspace@ipb.pt2014-09-25T11:24:18Z20112011-01-01T00:00:00ZHandlehttp://hdl.handle.net/10198/10590http://purl.org/coar/access_right/c_abf2open accessInvestment projectsEvaluationFinancial analysisNon-financial analysis208158 bytesother research producthttp://purl.org/coar/resource_type/c_5794conference paperhttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://bibliotecadigital.ipb.pt/bitstreams/731a5499-7dd0-4c5a-8f77-1dc4aabe2b5e/downloadFMA European ConferencePorto, Portugal
spellingShingle The relative importance of financial and non-financial analysis in project evaluation – evidence from portuguese firms
Moutinho, Nuno
Investment projects
Evaluation
Financial analysis
Non-financial analysis
status SINGLETON
subject.fl_str_mv Investment projects
Evaluation
Financial analysis
Non-financial analysis
title The relative importance of financial and non-financial analysis in project evaluation – evidence from portuguese firms
title_full The relative importance of financial and non-financial analysis in project evaluation – evidence from portuguese firms
title_fullStr The relative importance of financial and non-financial analysis in project evaluation – evidence from portuguese firms
title_full_unstemmed The relative importance of financial and non-financial analysis in project evaluation – evidence from portuguese firms
title_short The relative importance of financial and non-financial analysis in project evaluation – evidence from portuguese firms
title_sort The relative importance of financial and non-financial analysis in project evaluation – evidence from portuguese firms
topic Investment projects
Evaluation
Financial analysis
Non-financial analysis
topic_facet Investment projects
Evaluation
Financial analysis
Non-financial analysis
url http://hdl.handle.net/10198/10590
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