Stock Exchange Listing and Capital Budgeting Practices

  • Wesley Mendes-Da-Silva
  • Richard Saito


This chapter compares capital budgeting techniques employed in listed and unlisted companies. We surveyed the chief financial officers (CFOs) of 398 listed companies and 300 large unlisted companies, and based on 91 respondents, the results suggest that the CFOs of listed companies tend to use less simplistic methods more often, for example: NPV and CAPM; while CFOs of unlisted companies are less likely to estimate the cost of equity, despite being large companies. These findings indicate that stock exchange listings may require greater sophistication of the capital budgeting process.


Capital budgeting Finance survey Financial decisions Corporate finance 

JEL Code

G31 G34 C91 


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Copyright information

© Springer International Publishing AG, part of Springer Nature 2019

Authors and Affiliations

  • Wesley Mendes-Da-Silva
    • 1
    • 2
  • Richard Saito
    • 3
  1. 1.Sao Paulo School of Business Administration (FGV/EAESP)Sao PauloBrazil
  2. 2.University of Texas at AustinAustinUSA
  3. 3.Department of FinanceFundação Getulio Vargas at São Paulo (FGV/EAESP)Sao PauloBrazil

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