The investment appraisal practices of UK retailers

Christopher Cowton, Gloria Pilz

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Financial control by retail companies has been little studied, in spite of its prima facie importance. This paper reports the results of a survey of the capital budgeting practices of UK retailers, focusing in particular upon the financial techniques used to appraise proposed investment projects, No previous surveys have concentrated upon retailing, but, where disaggregated results have been reported, there has been a suggestion that retailing has lagged behind other sectors in its use of relatively sophisticated appraisal techniques that take into account the time value of money. The findings of this survey suggest, however, that retailing is now similar to other sectors, with both the sophisticated discounted cash flow techniques and the ‘naive’ payback being popular. A number of possible explanations, including economic recession, for developments among retailers are discussed.
LanguageEnglish
Pages457-471
JournalInternational Review of Retail, Distribution and Consumer Research
Volume5
Issue number4
DOIs
Publication statusPublished - 1995
Externally publishedYes

Fingerprint

Investment appraisal
Retailers
Retailing
Investment project
Financial control
Recession
Discounted cash flow
Retail
Value of time
Capital budgeting
Payback

Cite this

@article{2429252dea4147d2bbe5c8abb5ff0731,
title = "The investment appraisal practices of UK retailers",
abstract = "Financial control by retail companies has been little studied, in spite of its prima facie importance. This paper reports the results of a survey of the capital budgeting practices of UK retailers, focusing in particular upon the financial techniques used to appraise proposed investment projects, No previous surveys have concentrated upon retailing, but, where disaggregated results have been reported, there has been a suggestion that retailing has lagged behind other sectors in its use of relatively sophisticated appraisal techniques that take into account the time value of money. The findings of this survey suggest, however, that retailing is now similar to other sectors, with both the sophisticated discounted cash flow techniques and the ‘naive’ payback being popular. A number of possible explanations, including economic recession, for developments among retailers are discussed.",
author = "Christopher Cowton and Gloria Pilz",
year = "1995",
doi = "10.1080/09593969500000026",
language = "English",
volume = "5",
pages = "457--471",
journal = "International Review of Retail, Distribution and Consumer Research",
issn = "0959-3969",
publisher = "Routledge",
number = "4",

}

The investment appraisal practices of UK retailers. / Cowton, Christopher; Pilz, Gloria.

In: International Review of Retail, Distribution and Consumer Research, Vol. 5, No. 4, 1995, p. 457-471.

Research output: Contribution to journalArticle

TY - JOUR

T1 - The investment appraisal practices of UK retailers

AU - Cowton, Christopher

AU - Pilz, Gloria

PY - 1995

Y1 - 1995

N2 - Financial control by retail companies has been little studied, in spite of its prima facie importance. This paper reports the results of a survey of the capital budgeting practices of UK retailers, focusing in particular upon the financial techniques used to appraise proposed investment projects, No previous surveys have concentrated upon retailing, but, where disaggregated results have been reported, there has been a suggestion that retailing has lagged behind other sectors in its use of relatively sophisticated appraisal techniques that take into account the time value of money. The findings of this survey suggest, however, that retailing is now similar to other sectors, with both the sophisticated discounted cash flow techniques and the ‘naive’ payback being popular. A number of possible explanations, including economic recession, for developments among retailers are discussed.

AB - Financial control by retail companies has been little studied, in spite of its prima facie importance. This paper reports the results of a survey of the capital budgeting practices of UK retailers, focusing in particular upon the financial techniques used to appraise proposed investment projects, No previous surveys have concentrated upon retailing, but, where disaggregated results have been reported, there has been a suggestion that retailing has lagged behind other sectors in its use of relatively sophisticated appraisal techniques that take into account the time value of money. The findings of this survey suggest, however, that retailing is now similar to other sectors, with both the sophisticated discounted cash flow techniques and the ‘naive’ payback being popular. A number of possible explanations, including economic recession, for developments among retailers are discussed.

U2 - 10.1080/09593969500000026

DO - 10.1080/09593969500000026

M3 - Article

VL - 5

SP - 457

EP - 471

JO - International Review of Retail, Distribution and Consumer Research

T2 - International Review of Retail, Distribution and Consumer Research

JF - International Review of Retail, Distribution and Consumer Research

SN - 0959-3969

IS - 4

ER -