Factors Affecting the Amount of Time Required to Prepare Investment Decisions in Hungarian Processing Industries

Abstract

The present study addresses factors that influence the amount of time required to prepare investment decisions in Hungarian processing industries based on the findings of a survey conducted among Hungarian manufacturing companies in 2012. The aim of this study is to investigate the amount of time companies spent on preparing high-volume investment decisions and to find out whether equity ratios or company size have any impact on the length of decision preparation. The survey revealed that companies spent several months on making investment-related decisions. The findings also showed that small companies spent less time on pre-investment activities than large companies.

Keywords

• capital budgeting
• investment decisions
• economic decision-preparation process