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Purpose: This study aims to investigate the growing use of financial metrics (such as return on investment [ROI]) to measure performance and evaluate human capital (HC) investments. Design/methodology/approach: The research employed an embedded case study approach, examining how one ROI approach was applied to evaluating HC investments, across three sectors (corporate, public health and international development). Findings: Three major findings emerged in this study: First, interpretations of ROI can lead to ambiguity during implementation. ROI is interpreted trichotomously – metaphorically, as a desire for value; literally, as a metric; and procedurally, as a method for planning and evaluating HC investments. Second, understanding, measuring and tracking the domains of people performance (cognitive, affective and psychomotor) is vital to evaluating the impact of HC investments because this is where the change in behavior occurs. Third, although the logic model measures the change in process following an intervention (input-activity-output-outcome-impact), other approaches measure the change in behavior of people in the intervention (people performance). Practical implications: These findings provide clarity for practitioners about challenges when applying ROI. Originality/value: This is the first study to explore how the ROI financial metric is applied in a new domain by first examining its interpretation. It elucidates the use of ROI in practice, as well as the different purposes of key ROI approaches. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the value relevance of earnings in terms of predicting the value variables such as cash flow, capital investment (CI), dividend and stock return under the Indian institutional settings. Design/methodology/approach: The study used panel Granger causality tests to examine causality relationships among variables and panel data regression models to check the statistical associations between earnings and value variables. Findings: Based on a data set of 7,280 Bombay Stock Exchange-listed firm-years spanning over ten years from March 2009 to March 2018, the results show higher sensitivity of earnings toward cash flows, CI, divided and stock return and vice-versa. Further, the findings deduced from the empirical results demonstrate that earnings are positively related to value variables. Overall, the results established that earnings are value-relevant and have predictive ability to forecast the value variables that facilitate investors in portfolio valuation. The results are consistent with the predictive view of the value relevance of earnings. Several robustness checks confirm these results. Originality/value: This study brings new empirical evidence from a distinct capital market, India, and provides a new facet to the value relevance debate in terms of its prediction view. The study is among earlier attempts that jointly measure the ability of earnings in forecasting different value variables by taking a uniform sample of firms at the same period. Hence, the study provides a comprehensive view of the predictive ability of reported earnings. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to deal with one of the technical difficulties of private and social cost–benefit analysis, i.e. the choice of the proper cost–benefit aggregation rule (or method) to use, when a private capital investment decision has to be taken or a public project appraisal has to be carried out. Design/methodology/approach: Although the considerable amount of existing literature, the problem of the choice of the right mathematical aggregation rule is still an open one. The majority of authors claim that net present value is a superior method and thus it is the one to be always used. Other authors try to show that various aggregation methods, under specific conditions, arrive at the same recommendation. An exceptional case is the field of education economics where the internal rate of return is widely used. Findings: This paper offers a survey of this controversial topic which focuses on some clear cut formal properties of the various aggregation methods and considers the empirical characteristics of the different fields of application. Its main conclusion is that no "correct" aggregation rule, always applicable in all decision frameworks, can exist. Originality/value: Its main objective is to supply clear guidelines to orient practitioners and help the teaching on this topic. Its main conclusion is that no "correct" aggregation rule, always applicable in all decision frameworks, can exist. On the contrary, even if one restricts her/himself to a particular class of investments, often no clear-cut selection can be made. [ABSTRACT FROM AUTHOR]

Purpose - This study aims to use gray models to predict abnormal stock returns. Design/methodology/approach - Data are collected from listed companies in the Tehran Stock Exchange during 2005-2015. The analyses portray three models, namely, the gray model, the nonlinear gray Bernoulli model and the Nash nonlinear gray Bernoulli model. Findings - Results show that the Nash nonlinear gray Bernoulli model can predict abnormal stock returns that are defined by conditions other than gray models which predict increases, and then after checking regression models, the Bernoulli regression model is defined, which gives higher accuracy and fewer errors than the other two models. Originality/value - The stock market is one of the most important markets, which is influenced by several factors. Thus, accurate and reliable techniques are necessary to help investors and consumers find detailed and exact ways to predict the stock market. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to offer evidence-based findings on the under-researched role of finance in the sales and operations planning (S&OP) process, aiming to guide academics and practitioners towards successful S&OP implementations. Design/methodology/approach: The research builds upon a multiple case study, embracing five Latin American subsidiaries of four global manufacturing corporations from the consumer goods, chemical and pharmaceutical industries. Following an exploratory approach, the case study results are analysed in within- and cross-case analyses. Findings: The research findings are synthesised into a framework, demonstrating relevant benefits from the engagement of finance along the S&OP process and the implications of its interactions with traditional S&OP functions as sales, marketing and operations. The paper shows how finance adds value in supporting the process, enabling decisions on costs, margins, capital expenditures and return on investments. Finance strengthens S&OP when assessing demand- and supply-related risks and facilitates comparing the functional business areas' plans to budget. While finance participation is highlighted as necessary for supporting successful S&OP implementations, it also receives valuable inputs in return, characterising a two-way communication role that benefits the entire organisation. Originality/value: This is the first research paper focusing on empirically exploring the role of finance within S&OP, going beyond initial insights from practice and academia. It provides practitioners and scholars with an in-depth, evidence-based view of finance's integration along the S&OP process. [ABSTRACT FROM AUTHOR]

Purpose - This study aims to test whether the Islamic bank rate of returns are affected by the deposit rates of the interest-based bank in Turkey and whether they need to develop additional tools to manage it if they face an interest risk. Design/methodology/approach - This study tests the causality between the Islamic bank rate of returns and the time deposit interest rates between 2002 and 2010 in Turkey by use of the Granger Causality method based on monthly data. The same analysis is repeated with respect to the terms before and after 2006. Findings - It is concluded that for each term, the time deposit interest rates are the Granger cause of the Islamic bank rate of returns. This causality relation is more visible for the period after 2006. Originality/value - The results shows that the Islamic banks are sensitive to the interest-based bank interest rates in Turkey. Therefore, this finding suggests that these banks need to remain cautious vis-à-vis the interest rate risk. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine how capital investment projects are appraised in Lebanon; whether the risk is incorporated into this process by Lebanese firms and the impact of political risk on the capital budgeting process. Design/methodology/approach: This paper uses a questionnaire survey to investigate the capital budgeting practices of companies located in Lebanon, which is a country characterised by a high level of political risk. Findings: Lebanese companies tend to use more than one method of investment appraisal and, increasingly, they are using sophisticated discounted cashflow techniques alongside the payback period. The most widely used methods to evaluate risk include scenario and sensitivity analysis. Finally, political risk plays an important role in the capital budgeting processes of Lebanese companies. Originality/value: The paper reports on whether the methods of capital investment appraisal used throughout advanced Western economies are used in the context of an emerging economy. In addition, Lebanon is an ideal research site to study capital budgeting as the conflicts in the country of the past 50 years have required sizeable new expenditure on capital projects; the country is characterised by high levels of political risk which may lead corporate managers to use different approaches to investment appraisal and it provides an opportunity to study capital budgeting decisions by private, unlisted firms. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to evaluate the efficiency of the three telecommunications companies in Saudi Arabia: Saudi Telecom Company (STC), Mobily and Zain over the period of 2010–2019. This evaluation is a step toward improving the performance of the Saudi telecommunications sector. Design/methodology/approach: Three multicriteria decision-making (MCDM) techniques were used to calculate technical efficiency. These techniques include the traditional data envelopment analysis (DEA), window DEA and analytical hierarchy process (AHP). The three inputs used were total assets, operating expenses and capital expenditures, whereas the two outputs were sales revenue and total stockholders' equity. Findings: STC was ranked first using the three techniques, followed by Zain, and then Mobily. According to the DEA window analysis, these three companies were all efficient only in 2012. The efficiency was high in the initial years, 2010–2013, when it was above 0.90, and it dropped below 0.90 in the subsequent years, 2014–2019. In addition, the efficiency of STC remained high, with an average of 0.990. However, the average efficiencies of Zain and Mobily during this period were 0.807 and 0.804, respectively. Originality/value: This is the first study to use the three MCDM techniques to evaluate the performance of telecommunications providers. The results show that window DEA is better than the other two techniques at evaluating performance over time, as it has a higher discrimination power than either the traditional DEA or AHP. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of the study is to examine the value-based performance of firms in construction sector in India using Tobin's Q and Market Capitalization (MCAP) and then determine their significant financial drivers. Design/methodology/approach: The study is based on data from 87 firms engaged in infrastructure, real estate, industrial construction and allied areas in India over a study period of 10 years. Three distinct forms of panel regression models have been developed using Tobin's Q and MCAP as dependent variables. The models developed are using Baltagi's (1981) Error Component 2SLS, Varadharajan-Krishnakumar's (1987) Generalized 2SLS and Arellano – Bower/Blundell – Bond's (1991) dynamic panel. Findings: The study found that MCAP is a better suited value-based performance measure for construction sector firms in India. The study further reports that the age of the firm, profit after tax, investment in research and development, dividends, leverage and net fixed asset are significant positive drivers, whereas cash flow is a significant negative driver. Research limitations/implications: The study is limited to a geographic location; therefore, the findings of this study cannot be generalized. Practical implications: As MCAP is a better suited value-based performance measure of a firm in the construction sector, managers should focus on improving profitability, higher research and development activities, higher dividends and higher expenditures on net fixed assets for improvement. Originality/value: This is an original attempt to examine the value-based performance of firms in the construction sector in India using Tobin's Q and MCAP. [ABSTRACT FROM AUTHOR]

Purpose: It has been long debated whether the three bottom lines of sustainability (economic, environmental and social) can be achieved simultaneously or whether achieving one adversely affects the others. This paper analyses the economic sustainability of an environmental initiative, namely, effluent treatment plant (ETP), adopted by an Indian textile industry. Design/methodology/approach: Two situations have been considered for the analysis. First, pure economic view with the operating and installed capacities has been considered. Second, combined economic-environmental view using shadow prices of undesirable outputs (biological oxygen demand, chemical oxygen demand, total nitrogen, total phosphorous, etc.) has been analysed. Findings: It has been found that when pure economic view is considered, the net present value (NPV) of the ETP with present operating capacity (10,200 kL/day) is negative, implying that it is not economically sustainable. However, if the ETP is operated with the full installed capacity (17,000 kL/day), it becomes economically sustainable except in the case of very high cost of capital (13%). Finally, when shadow prices of undesirable outputs are considered, the NPV becomes positive, bolstering the economic-environmental sustainability of ETP. Research limitations/implications: In future, multiple case studies should be conducted in similar organisations to extend the general applicability of the outcome of this study. This research considers the economic and environmental aspects of ETP. However, social benefits have not been considered in this research work, which can definitely be addressed in future endeavours. Practical implications: Though very high capital investment of ETP acts as a barrier, the results of this study imply that the top management of textile and clothing organisations should look at it from the holistic economic-environmental viewpoint. The use of ETP also leads to social benefits by improving the health of local community and by reducing their hospitalisation, medical expenditure and absenteeism from school and workplace. The outcome of this research may enthuse the entrepreneurs to adopt environmental initiatives. Originality/value: The paper provides a framework to evaluate the economic feasibility of ETP by considering the time value of money. It is demonstrated with a real case that the environmental initiatives can be economically rewarding. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to revisit the relationship between intangible capital and labour productivity growth using the largest, up-to-date macro database (2000–2015) available to corroborate the econometric findings of earlier work and to generate novel econometric evidence by accounting for times of crisis (2008–2013) and economic recovery (2014–2015). Design/methodology/approach: To achieve these aims, this paper employs a cross-country growth accounting econometric estimation approach using the largest, up-to-date database available encompassing 16 EU countries over the period 2000–2015. The paper accounts for times of crisis (2008–2013) and of economic recovery (2014–2015). It separately estimates the contribution of three distinct dimensions of intangible capital: (1) computerized information, (2) innovative property and (3) economic competencies. Findings: First, when accounting for intangibles, the paper finds that these intangibles have become the dominant source of labour productivity growth in the EU, explaining up to 66 percent of growth. Second, when accounting for times of crisis (2008–2013), in contrast to tangible capital, the paper detects a solid positive relationship between intangibles and labour productivity growth. Third, when accounting for the economic recovery (2014–2015), the paper finds a highly significant and remarkably strong relationship between intangible capital and labour productivity growth. Originality/value: This paper corroborates the importance of intangibles for labour productivity growth and thereby underlines the necessity to incorporate intangibles into today's national accounting frameworks in order to correctly depict the levels of capital investment being made in European economies. These levels are significantly higher than those currently reflected in the official statistics. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the venture capital (VC) industry in China. It has demonstrated a history of high growth with significant variations over time. The authors have examined the trends and determinants of VC investments in China over a 20-year period from 1995 to 2014. They find that the aggregate amount of VC investments, the total number of venture deals and the average amount of venture investments per deal in China are all significantly impacted by macroeconomic conditions (i.e. GDP, export, money supply), technology innovations and financial market indicators (i.e. initial public offerings (IPOs), interest rate, price-to-earnings ratio, etc.). They also find that the 2007 China A-Share stock market crash and the subsequent global financial crisis have motivated VCists in China to adjust their investment strategies and risk levels by allocating more capital to later-stage investments and securing more deals with later-round financings. However, after the 2008 global financial crisis, the China's venture industry has recovered faster compared to the US counterpart response. Design/methodology/approach: The authors first perform trend analysis of VC investments at an aggregate level, by stages of development, and across industry from 1995 to 2014.To test H1 and H2, the authors use multiple regression models with lagged explanatory variables. To test H3, the authors use univariate tests to compare the measures of VC investments at an aggregate level, stage funds ratios, stage deals ratios and financing series ratios during both a five-year and seven-year time windows around the 2007 A-Share stock market crash and the subsequent financial crisis. Findings: The development of the VC industry in China has demonstrated a history of high growth with significant variation over time. The authors find that the aggregate amount of VC investments, the total number of venture deals and the average amount of venture investments per deal in China are all significantly impacted by macroeconomic conditions (i.e. GDP, export, money supply), technology innovations and financial market indicators (i.e. IPOs, interest rate, price-to-earnings ratio, etc.). The authors also find that the 2007 China A-Share stock market crash and the subsequent global financial crisis have motivated VCists in China to adjust their investment strategies and risk by allocating more capital to later-stage investments and securing more deals with later-round financings. However, the China VC industry has recovered faster compared to the USA just after the 2008 global financial crisis. Research limitations/implications: There are also limitations in the study. The VC data in China in the earlier 1990s might not be very reliable due to the quality of statistics. Therefore, the trend analysis and discussions mainly focus on the time after 2000. Also, the authors cannot find VC financing sequence data for the analysis. Second, there is no doubt that the policy impact from Chinese transforming economic system and government policies on its VC industry is substantial (Su and Wang, 2013). However, they cannot find an appropriate variable to be included in the empirical models to consider this effect. Further study on this area would provide meaningful information. Third, although the authors have done comparison study between the VC industry in China in this study and the VC industry in the US documented in Ning et al. (2015) and discussed some interesting findings, more in-depth research in this area will be very useful. Practical implications: The findings have meaningful implications for VCists and start-up companies seeking equity financings in China. VCists should closely monitor macroeconomic and market conditions to make appropriate adjustments to their risk and investment strategies. Entrepreneurs seeking equity financings for their business could also monitor the identified macroeconomic and market indicators, which can help them with their timing and to negotiate a better equity financing deal. VC financing is more likely to succeed when key macroeconomic and market indicators become favorable. Originality/value: This paper contributes to the literature by testing the supply and demand theory on the VC market proposed by Poterba (1989) and Gompers and Lerner (1998) from the macroeconomic perspective using 20 years' VC data from China. The authors also examine how the 2007 A-Share stock market crash and the subsequent financial crisis affected VCists to adjust their risk levels and investment strategies. It provides useful information for international academia and policymakers to understand the quick rise of China VC industry. The authors also find that the macroeconomic drivers of VC industry are somewhat different under different economic systems. [ABSTRACT FROM AUTHOR]

Purpose A substantial number of production assets in the offshore oil and gas industry are facing operation beyond their anticipated design life, thus necessitating a service life extension program in the future. Selection of the most suitable strategy among a wide range of potential options to extend the lifetime of equipment (e.g. re-using, reconditioning, remanufacturing, refurbishing and adding on safety/process control measures) remains a challenging task that involves several technical, economic and organizational complexities. In order to tackle this challenge, it is crucial to develop analytical tools and methods capable of evaluating and prioritizing end-of-life strategies with respect to their associated costs and quantifiable benefits. The paper aims to discuss these issues.Design/methodology/approach This paper presents a life-cycle cost-benefit analysis approach to identify the most suitable life extension strategy for ageing offshore assets by taking into account all the capital, installation, operational, maintenance and risk expenditures during the extended phase of operation. The potential of the proposed methodology is demonstrated through a case study involving a three-phase separator vessel which was constructed in the mid-1970s.Findings The results from the application case indicate that the capital expenditure (CapEx) accounts for the largest portion of life cycle cost for the replacement strategy, while risk expenditure (RiskEx) is the major contributor to costs associated with life extension. A sensitivity analysis is also conducted to identify factors having the greatest impact on the optimum life extension solution, including oil price, production rate and money interest rate.Practical implications In the past, the decisions about life extension or replacement of in-service equipment were often made in a qualitative way based on experience and judgment of engineers and inspectors. This study presents a “quantitative” framework to evaluate and compare the costs, benefits and risks associated with life extension strategies and subsequently to select the best strategy based on benefit/cost ratios.Originality/value To the best of authors’ knowledge, no studies before have applied life cycle assessment and cost-benefit analysis methods to prioritize the potential life extension strategies in the oil and gas industry sector. The proposed approach not only assists decision makers in selecting the most suitable life extension strategy but also helps duty holders reduce the costs corresponding to life extension execution. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to answer the following three questions about the new capital raised in initial public offerings (IPOs): why do some IPO companies raise a lot of new capital while some others do not? Where do the IPO companies use the new capital they raise in IPOs? How does the use of new capital affect the operating performance of IPO companies? Design/methodology/approach - Matching firm approach, univariate and regression tests. Findings - This paper finds that companies with higher research and development (R&D) spending, higher capital expenditure, lower working capital and more long-term debt tend to raise more capital in IPOs. These firms also spend more on R&D and capital expenditure. The results also suggest that the more the new capital firms raise in IPOs, the lower operating performance they have in subsequent years. However, firms spending more new capital on R&D and capital expenditure seem to perform better. Originality/value - These results help us understand the behavior of IPO firms. [ABSTRACT FROM AUTHOR]

Purpose - The strong performance of New Zealand's equity market and the Government's efforts to encourage small investors to invest in initial public offering (IPO) firms raises two questions: should retail investors invest in IPO offers and what types of IPOs are worth buying in the long term? The paper aims to discuss these issues. Design/methodology/approach - The authors construct buy and hold equally weighted portfolios of IPOs and peers based on sales forecast, market capitalisation, and price-to-book ratio. The authors employ four benchmark-adjusted performance measures: cumulative average abnormal return (CAR), holding period return difference, wealth relative, and excess return (α). Findings - IPOs underperform their peers over the medium and long term, with a five-year CAR ranging between -6.4 and -19.7 per cent. IPOs listed post-GFC show inferior benchmark-adjusted performance with a statistically significant average monthly CAPM α of -1.07 per cent (vs -0.13 per cent for pre-2009 IPOs). Over a five-year horizon, mature IPOs, IPOs with high market cap, high sales forecast, high leverage, low price-to-book ratio, and positive earnings forecast outperform other IPOs. Small IPOs or those with a small degree of leverage exhibit the worst five-year CAR ranging between -30.2 and -49.1 per cent. Of all IPOs examined, large firms, well-established firms, and value firms achieved positive five-year CARs of between 6.6 and 17.5 per cent. Practical implications - The results are useful for retail investors and financial advisors in making sensible investment decisions. Originality/value - This study is the first to utilise book-to-market and sales forecast to construct peer samples and to identify the red flags for IPO downfalls in New Zealand. It covers the longest sample period (1991-2015) in New Zealand's context. [ABSTRACT FROM AUTHOR]

Purpose Making rational and undistorted corporate investment decisions is critically important to organisations. “Scientific” investment appraisal can play a central role, particularly setting the hurdle rate. Empirical research reveals that actual rates generally exceed organisations’ cost of capital – the so-called hurdle rate premium (HRP) puzzle. Allowing for bounded rationality of corporate decision-makers, the purpose of this paper is to mobilise the retrievability cognitive bias as one explanation of this paradox.Design/methodology/approach A systematic structuring and investigation of the legacy of eight scenarios, representing “correct” and “incorrect” decisions on “good” and “bad” proposals, is used to explain the inconsistency between normative capital investment theory and actual practice.Findings Decision makers’ cognitive processes based on informal perceptions, strengthened by the scope of formal post-audit routines, provide a plausible explanation why investment decision makers tend to systematically set hurdle rates too high.Research limitations/implications The findings have still to be explored in more depth by fieldwork and experimental research.Practical implications The policy implications of this study are that corporate success could be enhanced by making executives aware of the HRP phenomenon and of its behavioural causes; also by including significant rejected investment proposals in the post-audit programme and communicating the opportunity cost of “false negative” decisions on proposals not adopted.Originality/value The paper provides a new explanation for a recognised phenomenon: Allowing for bounded rationality of corporate decision-makers, the paper applies research on a cognitive bias to the setting of the hurdle rate in investment appraisal. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to seek to illustrate the way in which carbon emissions are given calculative agency. The authors contribute to sociology of quantification with a specific focus on the performativity of the carbon number as it was introduced to the organization's capital investment accounts. In following an intangible gas to a physical amount and then to a dollar value, the authors used categories from the sociology of quantification (Espeland and Stevens, 2008) to explore the persuasive attributes of the newly created number and the way it changed the work of actors, including the way they reacted and viewed authority. Design/methodology/approach - An empirical case study in a large Australian water utility drawing on insights from the sociology of calculation. Findings - The authors present empirics on the calculative appeal of the carbon emissions number, how it came into being and its performative (or reactive) effects. The number disciplined behaviour and acted like a boundary object, while at the same time, enroled allies through its aesthetic appeal in management accounting system designs. In framing the empirics, the authors were able to highlight how the carbon number became a visible actor in the newly emergent and evolving carbon market. Practical implications - This paper provides an empirical framing that continues the project of writing the sociology of calculation into accounting. Originality/value - This study contributes to the sociology of quantification in accounting with an empirical framing device to reveal the representational work of a number and how it expands as it becomes implicated in broader networks of calculation. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this study/paper is evidence to suggest that information communication technology (ICT) capital projects are different from non-ICT projects and that as a result the appraisal of such projects is more difficult. This may suggest that organisations would use dissimilar financial and risk assessment models or place different importance levels on such models between the two types of investment. The purpose of this paper is to investigate this issue and present the results of research into the practices of organisations in Czech Republic that have recently undertaken an appraisal of both ICT and non-ICT capital projects. Design/methodology/approach – A factual and attitudinal survey was developed and conducted during the end of 2011, addressed to organisations based in the Czech Republic. The object of the survey was the identification of current practices in respect of the appraisal of both ICT and non-ICT projects and the opinions of senior executives on a number of important issues regarding such practices. This paper focuses on the issues relating to ICT projects being “different” from non-ICT projects. Findings – The empirical findings support the literature in that ICT projects are, in many respects, different from non-ICT projects. However, the evidence indicates that, in practice, there is no significant difference in the financial and risk assessment models used in their appraisal. This indicates that any perceived difficulties, which may infer that the projects are “different”, are overcome (or ignored), to some extent, when it comes to the formal financial and risk assessment stage of project appraisal. There is also evidence to suggest that practitioners use assessment models that academics regard as unsophisticated. The findings also show that strategic issues are more important with respect of ICT projects than non-ICT projects. The research therefore supports the view that ICT projects are perceived to be different, but that the current conventional (financial and risk) appraisal models are adequate to appraise such capital projects, provided they are supported by a strategic assessment. Research limitations/implications – As the findings are based on a survey of companies in the Czech Republic only, we accept that the research results may have some limitations in terms of drawing general conclusions. The concern over drawing general conclusions is also brought about by the relatively low response rate, although the rate is in line with previous published research. Practical implications – ICT projects are different and as such these differences must be taken into account when appraising capital projects. The evidence supports the need for practitioners to review their appraisal of ICT capital projects, by adopting more sophisticated financial and risk models (as prescribed by academics) and linking their appraisal to corporate strategic goals. Future research should be aimed at identifying the formal and informal strategic approaches adopted by practitioners in the appraisal of ICT capital projects. Originality/value – This is the only survey to simultaneously address the appraisal issues concerning both ICT and non-ICT projects in the Czech Republic. As such, it gives a valuable insight into the practices of Czech Republic organisations in their appraisal of ICT and non-ICT capital projects. The identification of the four main problem areas with respect to the appraisal of ICT projects will help to focus academic research in the future. [ABSTRACT FROM AUTHOR]