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Artificial intelligence (AI) is an important source of competitive advantage as it enables task augmentation and automation. However, while AI can create significant value, it is important to note that AI investments are fraught with risks and uncertainties. Thus, managers are likely to carefully evaluate potential AI investments before committing to investing. However, we know little about how managers' appraisal of AI influences their investment choices. Drawing upon theorization in the areas of business value of AI, agentic information systems (IS) appraisal, and time-situated agency, we extend existing theory in two ways: (1) development of an AI classification (foundational typology) that proposes two dimensions (action autonomy and learning autonomy) for classifying AI by type and level of autonomy; and (2) development of propositions that leverage time-situated agency and the AI classification to explicate how managers' delegation preferences influence their AI investment appraisal. This paper contributes a foundational theoretical platform for furthering AI investment appraisal research. In addition, the paper sets an agenda for future research in this area. [ABSTRACT FROM AUTHOR]

Knowledge of the value generated within higher education institutions is of great interest for various agents, particularly managers, as well as governments and society. University mission statements and their scope complicate any comparable measurement of the effects each university may have within a particular region. Perhaps the most adequate term for it and one that includes simple economic impact is value. This study is centered on the estimation of the short-term economic impact of the University of Granada (UGR). Using a method based on the input–output framework and multipliers, the total (direct, indirect, and induced) effects of UGR on production, income, and employment are quantified, differentiating between economic sectors. The total economic impact of UGR is 3.2 times the expenditure of the agents linked to the activities of the university, which implies that each Euro that the government invested was converted into 7.1 Euros. Its effect on total production surpassed two-thousand million Euros, with an income of one-thousand million Euros and over 25,000 equivalent jobs. Quantification of the impact is a measure of the importance of UGR within the province of Granada and the performance of public-sector investment in higher education. [ABSTRACT FROM AUTHOR]

Net present value (NPV) is a widely used technique in capital budgeting. In this paper, we develop a Bayesian NPV framework using a Gibbs sampler. This approach allows decision-makers to integrate their knowledge, past experience, and uncertain and volatile cash flows from carbon emissions credits into decisions dealing with energy efficient, sustainable manufacturing equipment. The results indicate NPV is highly dependent on the nature of volatility and uncertainty of the cash flows. Without inclusion of this information through the Bayesian framework results, NPV becomes overstated, and thus it may provide biased guidance for the investment. The results developed in this paper further show that the frequency of very high and low cash flows and to a lesser degree their variability adversely impacts NPV. The results may also explain reasons for the economic phenomenon known as the energy efficiency gap. [ABSTRACT FROM PUBLISHER]

Investment alternatives selection involves a variety of criteria that should be evaluated to provide a solid basis for decision-making. Some prior research has proposed methodologies and frameworks to support such alternatives selection. However, many of them present intrinsic limitations related to their applicability and complexity. Thus, this paper presents a framework for decision-making concerning investment alternatives that are usually related to equipment selection for a manufacturing process, technology selection for product development, product portfolio selection, and production strategy selection, among others. The framework is based on a multi-criteria approach that considers three main criteria: (i) strategy, which considers company market competitiveness; (ii) quality, which considers client requirements; and (iii) economic aspects, considering the overall financial benefits of the investment. These criteria are evaluated with the support of well-known tools from traditional management engineering such as SWOT, QFD, NPV and Payback. The results obtained through the use of these tools are rated using the MAUT method. Two major contributions are offered by this framework: (i) the integration of three key criteria for decision-making that enables to obtain a balanced analysis of the investment alternatives and (ii) the intrinsic easy-to-implement characteristic of the framework – based on the use of traditional tools. The proposed framework was applied in a tailor-made furniture company to support a make-or-buy decision, and the obtained results are discussed. [ABSTRACT FROM PUBLISHER]

This article extends discussions of potential biases that can exist in applying cost–benefit analysis. While there is extensive evidence that capture can result in stakeholder manipulation of inputs, there are also claims that the analysis is inherently theoretically bias in favour of over acceptance. The article shows that, contrary to these latter claims, treating projects in isolation is unlikely to produce such bias; indeed, it is as likely as not to lead to suboptimally low acceptance rates. The reason for excessive acceptance of projects therefore is largely due to institutional capture of the analysis for either self-interest or natural human over-optimism. [ABSTRACT FROM PUBLISHER]

Capital budget evaluation plays a crucial role in financial management. This places a firm in a competitive position. Recent development points to the need for implementing capital budgeting in construction organizations due to the capital-intensive nature of construction business. The aim here is to investigate the trends in the practice of capital budget evaluation among construction contractors operating in Hong Kong over a 20-year period. A longitudinal survey approach is used; four cross-sectional surveys were conducted between 1994 and 2014. The findings indicate that ‘formal financial evaluation’ is the most common technique used for capital budget evaluation. In addition, the practice of capital budget evaluation is more pronounced in the large-sized firms. A comparative analysis of the results of the four surveys reveals that there are variations in the degree and frequency of use of capital budget evaluation techniques over the study period. Further research is needed to understand the challenges associated with the use of sophisticated capital budget evaluation techniques in the construction industry of Hong Kong. [ABSTRACT FROM AUTHOR]

Benefits Analysis has been evolving over the past decade from roots in multi-criteria analysis, causal mapping and multi-methodology. It has now reached a level of maturity such that it deserves to be treated as a method in its own right, and this paper seeks to document the method and provide guidance on its use. Benefits Analysis is a systematic method for formulating complex, multi-factor investment appraisal problems where decision-makers seek to realize non-financial benefits. Such decision problems abound in military OR, particularly the management of equipment capability and research. Benefits Analysis connects qualitative and quantitative OR methods and facilitates robust assessment, including multi-methodology. This paper describes the principles of Benefits Analysis and discusses its application to a variety of real problems, including research management, capability management, balance of investment, business case development and benefit quantification strategies. [ABSTRACT FROM AUTHOR]

Previous work has shown that while most conventional investment appraisal techniques appear ill-suited for use in the water industry of England and Wales, the Balanced Scorecard (BSC) offers considerable potential as an investment decision making tool. This study accounts for much of the criticism of the BSC technique, proposing methodological changes to overcome these difficulties. A more comprehensive treatment of the modified methodology, illustrated by BSC development and application flowcharts, demonstrates how this technique might operate in practice. [ABSTRACT FROM AUTHOR]

Probably more surveys have been undertaken on the use of capital budgeting techniques than on any other accounting and finance topic. Despite the many surveys a number of issues remain unresolved. The surveys have consisted of a sample of either very large or very small companies and observations relating to the impact of company size have been derived from comparing the responses from different surveys undertaken at different points in time. The aim of this paper is to provide additional empirical evidence relating to some of the unresolved issues and to examine the impact of company size on the use of financial appraisal techniques. In particular, the paper concentrates on the treatment of inflation, the appraisal of advanced manufacturing technologies and examines whether the empirical evidence supports the claim that many companies use excessive discount rates. [ABSTRACT FROM AUTHOR]

Despite the rapid development of retailing as an academic subject in its own right, research into financial management in the retailing sector remains an underdeveloped area. This paper provides a brief synopsis of some of the main issues in corporate finance, with a view to highlighting areas which could constitute a worthwhile programme of research in the retailing sector. The availability of financial databases such as Extel and Datastream, containing timeseries of the accounts of retailing companies in the United Kingdom, makes this more than feasible. In an attempt to stimulate interest and avoid a completely abstract theoretical discussion, the paper also reports on the results of a survey on financial management practice, based on a sample of United Kingdom retailers. [ABSTRACT FROM AUTHOR]

Quarmby D. A. (1970) Estimating the transport value of a Barrage across Morecambe Bay, Reg. Studies 4, 205–239. The paper describes an attempt to estimate the net transport value of a road built on top of a Morecambe Bay Barrage whose primary purpose would be water supply. The basic method involved a traffic model to simulate vehicle movements on the road network in the area, and an economic evaluation procedure to measure benefits arising from changes in the network. Problems included the strong dependence of benefits to the Barrage road on the possible existence of other projects such as the Arnside Link and the Duddon Estuary crossing (and vice versa), and the budget constraint on road building in the Ministry of Transport which has the effect of raising the criteria for road projects above those normally required for other public sector investments. The effects of tolls were also studied. [ABSTRACT FROM PUBLISHER]

Purpose—The purpose of this study is to investigate various aspects of capital budgeting techniques adopted by Kuwaiti non-financial companies listed on the Kuwait Stock Exchange (KSE). Design/methodology/approach—A questionnaire is used to collect data from Chief Executive Officers (CEOs), Chief Financial Officers (CFOs) and other managers of manufacturing, service and real estate companies listed on the KSE. Findings—The result of the analysis unveiled that top management and people who used the assets are the main sources of capital budgeting ideas. The analysis also unveiled that net present value and profitability index are the most frequently used capital budgeting techniques and the choice of the technique is determined by the nature of the project under assessment, and the academic and professional capabilities of corporate staff. The analysis further demonstrated that factors such as uncertainty about the outcome of the capital budgeting techniques and lack of required data and information to use capital budgeting techniques could prevent Kuwaiti non-financial companies from adopting capital budgeting techniques. Finally, the analysis disclosed that non-financial factors such as strategic planning, corporate image, employees' capabilities and environment protection are taken into consideration when making capital budgeting decisions. Practical implications—Kuwaiti companies either possess technology or have the required resources to install advanced technology to assist them in employing sophisticated capital budgeting techniques that take into account inflation and risk. This would ensure more accurate results and minimize uncertainty about the outcome of the capital budgeting decisions. Originality/value—This study is based on primary data collected directly from non-financial companies listed on the KSE. [ABSTRACT FROM AUTHOR]