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An Investigation of the Accounting Information and Its Role for
Capital Expenditure Decisions in the Industrial Companies Listed
in Amman Stock Exchange

+r. ,alal A. Al- -assar
1.
I/tihal A. A/ed
2
1.Associate !rofessor) +e"art0ent of Accounting) Facult1 of 2cono0ics and Ad0inistrati3e Sciences) 4ar5a
6ni3ersit1) !.&. 7o8 192222) 4ar5a 1911*) Jordan
2.4ar5a 6ni3ersit1 : Jordan
.2-0ail of the corres"onding author;talal<=assar>1ahoo.co0

Abstract
,he stud1 has dealt with accounting infor0ation) and its definition as well as its i0"ortance. It?s ai0ed to
in3estigate the role of accounting infor0ation in 0a=ing decisions in ca"ital e8"enditure to industrial co0"anies
listed in A00an Stoc= 28change. ,hus to achie3e this goal) the researchers were distri/uted a 5uestionnaire to a
sa0"le of 7*# the industrial co0"anies. ,he researchers ha3e used the necessar1 grou"s of statistical 0ethods
are a3aila/le in the Statistical !ac=age of Social Sciences S!SS#) to achie3e the results of the stud1.An
i0"ortant result of the stud1) was a""arent) that ha3ing a statisticall1 significant effect of the three t1"es of
accounting infor0ation and of A/out the e8"ected cash flows at the end of the ter0 of the asset in3est0ent) and
infor0ation cash inflows and outflows) and infor0ation cash outflows ta8##. In ca"ital e8"enditure decisions)
and increase awareness of the de"art0ents of industrial co0"anies and contri/ute to awareness of the role of
accounting infor0ation will contri/ute significantl1 to the u"grading and ad3ance0ent of ca"ital e8"enditure
decisions in the co0"anies 0entioned. ,he 0ain reco00endation reached /1 this stud1 was the continuation of
the industrial co0"anies for using accounting infor0ation such as e8"ected cash flows at the end of the life of
the asset) infor0ation of cash outflows ta8es#) and the annual cash flow infor0ation) which /eco0e of their
significant i0"act on ca"ital e8"enditure decisions.
Ke!ords" Accounting infor0ation) decisions ca"ital e8"enditure) industrial co0"anies.

#$ Introduction
,here are 0an1 of uncertaint1 and ris= e8"erienced /1 the glo/al econo01 re5uires creating an in3est0ent
cli0ate that is characteri@ed /1 the credi/ilit1 of accounting infor0ation which hel"s to 0a=e in3est0ent
decisions and thus achie3e econo0ic de3elo"0ent) since the in3est0ent decision is one of the 0ost difficult
decisions and the 0ost sensiti3e) this decision) in essence) re"resents the allocation of resources on one hand) on
the other hand is one of the for0s of distri/ution of national inco0e 11#.
,here is a situation that traditional organi@ations that "ri0aril1 res"onsi/le for the decision-0a=ing
"rocess of ca"italis0 is the senior 0anage0ent. 7ut the new conce"ts differed to enter each of the 0iddle
0anage0ent) and the lower 0anagerial class) to "artici"ate in 0anage0ent decisions) and /ecause of the
a3aila/ilit1 of infor0ation and s"read in the organi@ation that allowed for indi3iduals in lower 0anage0ent
decision-0a=ing) it is essential that these decisions are correct and add 3alue to the /usiness 9#.
It also re"resents a decision on the ter0ination of that stage of the selection "rocess and sta/ilit1 on
the one alternati3e) as it is the center of the ad0inistrati3e "rocessA /ecause these decisions will deter0ine the
strategic line of the co0"an1 1*#.
,he stud1 will address of accounting infor0ation of Infor0ation cash inflows and outflows) cash
flow infor0ation /e1ond the annual) the infor0ation e8"ected cash flows at the end of the ter0 of the asset
in3est0ent) and infor0ation flows of o"erating cash outflows ta8##. &n that /asis) the stud1 of the role of
infor0ation accounting decisions in ca"ital s"ending in industrial cor"orations listed in A00an Stoc= 28change
AS2# will contri/ute to enhancing the a/ilit1 of these co0"anies to achie3e the o3erall o/Becti3es of econo0ic
de3elo"0ent) and the de3elo"0ent of decision-0a=ing "rocess with senior 0anage0ent to increase their
efficienc1) and effecti3eness in the utili@ation of a3aila/le resources on the /est. Also) the1 do not differ that the
decisions of ca"ital s"ending as i0"ortant when decision 0a=ers in co0"anies of all t1"es) and this has its
causes) including the fear of the low rate of financial return co0"ared to s"ending) add to it that such decisions
ca"ture the interest of the decision 0a=ers in the co0"an1 on the differences of 0anagers and in3estors) and the
rest the rele3ant authorities of the co0"an1.

1.1 Objectives of the study
,his stud1 ai0ed to achie3e the following o/Becti3es;
1- ,o clarif1 the conce"t of ca"ital s"ending and its i0"ortance and its "ro"erties.
2- ,o identif1 the 0anage0ent?s a/ilit1 to use accounting infor0ation in 0a=ing a decision in ca"ital s"ending.
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9- ,o stand on the 0echanis0 of decision in ca"ital s"ending in the Jordanian industrial cor"orations.
%- ,o Su/0it of "ro"osals and reco00endations that could contri/ute to the ad3ance0ent of the "rocess of
decision-0a=ing ca"italis0 and u"grade the0 to /etter contri/ute to industrial co0"anies listed on the A00an
Stoc= 28change.
(- ,o identif1 an1 i0"act of accounting infor0ation and 0a=e a decision in ca"ital s"ending for industrial
co0"anies to contri/ute to the co00unit1 of stud1.

1.2 Problem of the study
As the success of co0"anies or stu0/le is located in the 0ost "art on the failure of de"art0ents of these
co0"anies or their success in 0a=ing a decision in ca"ital e8"enditure which is /ased on a careful stud1 of the
econo0ic feasi/ilit1 of the "roBect) and the area co3ered /1 this resolution) and ta=e into account the current
realit1) and the future of the 3aria/les related effects including "ossi/le decision on the "erfor0ance of
co0"anies in ter0s of financial) o"erational) and then on their a/ilit1 to continue in the 0ar=et in which it
o"erates) and fro0 the a/o3e) the "ro/le0 of the research is /ased and centered around the following 5uestions;
1- Is there a role for the cash inflows and outflows the cost of the asset "urchase) the sale of assets and "ro"ert1#
in ca"ital s"ending decisions in industrial cor"orations listed in A00an Stoc= 28changeC
2- Is there a role for the e8tra annual cash flows the cost of 0anage0ent and o"eration of the original
in3est0ent# decisions in ca"ital s"ending in industrial cor"orations listed in A00an Stoc= 28changeC
9- Is there a role for the e8"ected cash flows at the end of the ter0 of the asset in3est0ent the original sale as
scra"# in ca"ital s"ending decisions in industrial cor"orations listed in A00an Stoc= 28changeC
%- Is there a role for the e0erging o"erational cash flows ta8es# to 0a=e decisions in ca"ital s"ending in
industrial cor"orations listed in A00an Stoc= 28changeC

1.9 Research Methodology
,he research "ro/le0 is de0onstrated in the following; Is there a role for the cash inflows and outflows the cost
of the asset "urchase) the sale of assets and "ro"ert1# in ca"ital s"ending decisions in industrial co0"anies listed
at A00an Stoc= 28changeC Is there a role for the e8tra annual cash flows the cost of 0anage0ent and
o"eration of the original in3est0ent# decisions in ca"ital s"ending in industrial co0"anies listed in A00an
Stoc= 28changeC Is there a role for the e8"ected cash flows at the end of the ter0 of the asset in3est0ent the
original sale as scra"# in ca"ital s"ending decisions in industrial co0"anies listed in A00an Stoc= 28changeC Is
there a role for the e0erging o"erational cash flows ta8es# to 0a=e decisions in ca"ital s"ending in industrial
cor"orations listed at A00an Stoc= 28changeC
,he i0"ortance of research is "resented through the following;
1. 7uilding and conscious thought a/out Accounting infor0ation and its role in ca"ital e8"enditure decisions.
2. Dighlighting the role Accounting infor0ation and ca"ital e8"enditure decisions.
9. Eeasure the role Accounting infor0ation and ca"ital e8"enditure decisions.
in the industrial co0"anies o"erating in Jordan.
%. Find out how to a""l1 this infor0ation in industrial co0"anies listed in A00an Stoc= 28change.
,he stud1 relied on a descri"ti3e a""roach for the "ur"ose of descri"tion of the res"onses of the sa0"le of the
stud1 a/out their 3iews on the le3el of Accounting infor0ation in industrial co0"anies listed at A00an Stoc=
28change) has /een the use of the anal1tical 0ethod to 0easure the role of the a""lication of Accounting
infor0ation and ca"ital e8"enditure decisions in the industrial co0"anies listed in A00an Stoc= 28change)
through the use of statistical 0ethods to test the suita/ilit1 h1"otheses of the stud1.

1.4 Study Model
,he 0odel of the stud1 is shown /elow;

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1.5 Research Hyotheses
,he current stud1 e8a0ines the following h1"otheses in null for0;
%o" &o statisticall significant effect of accounting information in making decisions Capital expenditure
for industrial companies listed and traded on the ASE$
,his h1"othesis can /e di3ided to the following null h1"otheses;
Do
1
; No statisticall1 significant effect of cash inflows and outflows the cost of the asset "urchase) the sale of
assets and "ro"ert1# when the le3el of significance a F *.*(# to 0a=e decisions Ga"ital e8"enditure in industrial
cor"orations listed in A00an Stoc= 28change.
Do
2
; No statisticall1 significant effect of the e8tra annual cash flows the cost of 0anage0ent and o"eration of
the original in3est0ent# at the le3el of significance a F *.*(# to 0a=e decisions Ga"ital e8"enditure in
industrial cor"orations listed in A00an Stoc= 28change.
Do
9
; No statisticall1 significant effect of e8"ected cash flows at the end of the ter0 of the asset in3est0ent the
original sale as scra"# at the le3el of significance a F *.*(# to 0a=e decisions Ga"ital e8"enditure in industrial
cor"orations listed in A00an Stoc= 28change.
Do
%
; No statisticall1 significant effect of o"erating cash flows /e1ond the ta8# at the le3el of significance a F
*.*(# in the decision-0a=ing "rocess Ga"ital e8"enditure in industrial cor"orations listed in A00an Stoc=
28change.

1.! Samli"g
,he stud1 "o"ulation consists of all industrial cor"orations listed on the A00an Stoc= 28change of 7*#) either the
stud1 sa0"le of general 0anagers and directors of ad0inistrati3e units and financial 0anagers) internal audit
e8clusi3el1) totaling 2$*# as director) due to the large si@e of the sa0"le was selected a stratified rando0 sa0"le of
each co0"an1 to /e a research sa0"le and rate (*H# of the0) totaling 1%*# director in co0"anies included in the
stud1. Note that distri/uted 1%*# 5uestionnaires) /ut he was not su/Bected to statistical anal1sis onl1 11*# /ecause
of the lac= of returned or co0"letion of the res"ondents) as shown in ,a/le 1# as follows;

'able (#) *alid+ collected+ and distributed ,uestionnaires
-ercentage of valid
.uestionnaires
*alid
.uestionnaires
Response
rate
Collected Distributed /ob
$9.9H 2* 6$.6H 2% 9( Ieneral Eanager
H99.$ 9* 91.%H 92 9( Eanaging
+irector
$7.9H 29 9%.9H 99 9( Financial
Eanager
H96.9 91 91.%H 92 9( Internal Audit
Eanager
01$02 ##1 34$52 #6# #51 'otal

1.# $ata collectio"
,o achie3e the "ur"oses of the "resent stud1 ai0ed to identif1 the le3el of a""lication of accounting infor0ation
and its role in ca"ital e8"enditure decisions in the industrial cor"orations o"erating in Jordan listed at AS2) the
researchers were ado"ted two t1"es of "ri0ar1 sources of data collection) na0el1;
% & Primary $ata
It is designed to identif1 and collect data through field 3isits e8"lorator1) inter3iew and de"art0ents of industrial
cor"orations o"erating in Jordan listed in A00an Stoc= 28change included in the stud1.
' & Seco"dary $ata
It is data that has /een o/tained through sources and references a3aila/le in the li/raries of the Jordanian
uni3ersities) as well as "re3ious studies rele3ant to the "re"aration of the conce"tual and theoretical fra0ewor= for
the stud1 of e8a0"le; Ara/ and foreign sources) research and re3iew of the literature) 0aga@ines and studies on the
su/Bect of accounting infor0ation) the ca"ital e8"enditure decisions of co0"anies o"erating in the industrial
contri/ution Jordan listed in AS2) with the ai0 of "re"aring the theoretical fra0ewor= for the stud1. +ocu0ents
related to data and infor0ation on the ca"ital e8"enditure decisions of industrial co0"anies o"erating in Jordan
contri/ution listed on the AS2. 7enefit fro0 data released /1 the A00an Stoc= 28change and is a3aila/le on the
we/ sites.

6$ Literature revie!
,he accounting infor0ation relating to cash flow is useful in "ro3iding users of financial state0ents "ri0aril1
necessar1 to 0easure the co0"an1?s a/ilit1 to generate cash or its e5ui3alent) and re5uire in3est0ent decisions to
assess the a/ilit1 of users of infor0ation and degree of certaint1 regarding the generation of flows. ,he o/Becti3e
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of IAS first to o/lige co0"anies to "ro3ide infor0ation on actual changes in cash or e5ui3alent) and so "re"are a
list of the cash flows with the di3ision of cash flows during the "eriod to flow fro0 o"erating acti3ities)
in3est0ent and financing) and attached anal1sts) in3estors) creditors and others in3ol3ed and interested
constituencies financial and econo0ic i0"ortance on the state0ent of cash flows due to the difficulties and
"ro/le0s associated with the accrual /asis) which entails hide cash flows) and the widening ga" /etween the0
and the net "rofit) and con3inced the0 that the net cash flow fro0 o"erations is the ulti0ate guide on the 5ualit1
of the "rofits) /ecause the co0"an1?s success is through access to the net inflows "ositi3e cash fro0 its o"erating
acti3ities $#.
,he ai0 of financial re"orting is essential to "ro3ide users and sta=eholders related to the "roBect with
the necessar1 infor0ation to hel" the0 0a=e decisions for the 3arious econo0ic) as is the accounting
infor0ation s1ste0 concerned with the identification and 0easure0ent and deli3er1 of 5uantitati3e infor0ation
on the econo0ic unit can /e used in the e3aluation and decision-0a=ing /1 the "arties or categories used for this
infor0ation 6#.
,he ca"ital e8"enditure in3est0ent of funds in the assets used /1 the co0"an1 for a long ti0e) and in
s"ite of ca"ital s"ending that occurs in the current "eriod) /ut the re3enue i0"lications will continue for a long
ti0e) so the success of the co0"anies in the future de"ends on the integrit1 of in3est0ent decisions ta=en at the
"resent ti0e) although an1 error in the esti0ates of in3est0ent /e serious conse5uences) and that it is i0"ossi/le
to correct these conse5uences) and so the ris= increases as the a0ounts re5uired to in3est su/stantial and
econo0ic conditions in the ra"id de3elo"0ent) and it can /e said that what distinguishes ca"ital s"ending is;
long-ter0 co00it0ent to in3est 0one1) and /etting on the futureA 7ecause /etting is ris=1 and ris=1) and with
one another) the in3est0ent is a /et on the dis/urse0ent uncertain at the 0o0ent) howe3er) /e achie3ed in the
future is uncertain %#.
It can determine the factors to be taken into account !hen making decisions in capital spending"
71 the state0ent the =e1 factors "u/lic to /e ta=en into account) there are se3eral ad3ance reser3ations are;
,hese factors are not li0ited to) there 0a1 /e so0e other factors 0a1 ta=e into account in accordance with the
conditions) 1ou 0a1 not ta=e all factors into consideration when stud1ing the feasi/ilit1 of a "articular "ro"osal
when e8"osed to the wa1s and 0ethods technical e3aluation and co0"arison /etween the "ro"osals 0a1 also
ta=e into account all the factors when using another 0ethod) so we tr1 as 0uch as "ossi/le co0"rehensi3e
in3entor1 factors to /e ta=en into account when deciding ca"ital e8"enditure (#.
1 - Gash inflows and outflows;
Fall under this heading the "urchase "rice of fi8ed assets) which ha3e /een on for se3eral 1ears) such as the
construction of a /uilding or factor1 and residence) these e8"enditures re"resent the initial cash outflow# is
added to the auto0atic increase in current assets) and the e8"enses of installation of 0achiner1 and "re"ared for
the run) and is considered a sale of assets cash flow inside#.
2 - Annual cash outflows related to the o"eration and 0anage0ent of the asset in3est0ent;
Sales are recogni@e as an i0"ortant cash inflows) and also ta=es the /urden and e8"ense of cash for o"erations
cash outflows# and o3er the econo0ic life of the asset in3est0ent. It is necessar1 to ta=e into account whene3er
"ossi/le the e8"ected changes in current assets during the "eriod.
9 - 28"ected cash flows at the end of the ter0 of the asset in3est0ent;
Re0ind the0 of the cash inflows fro0 the asset sale as scra") and in s"ite of the difficult1 of esti0ating this
3alue) howe3er) neglected to ta=e the lead with the wrong decision not to o3erloo= the e8"enses of scra""ing the
original.
% - Gash outflows and actress in ta8es;
&n the grounds that the co0"an1 0a=e a "rofit) all the /urden of in3est0ent are deducted fro0 re3enue /efore
arri3ing at ta8a/le "rofit it achie3ed sa3ings or gains ta8 for each "eriod) and it can /e seen that the e8e0"tion
fro0 se3eral angles;
A - 0ust choose the 0ethod of de"reciation allowa/le use of the ta8) and that achie3e 0a8i0u0 sa3ings fro0
this side) 0a1 /e this 0ethod is associated with age-econo0ic origin) and so can the a0orti@ation of assets
within the "eriod allowed /1 the ta8) e3en if the asset 3alue at the end of the "eriod.
7 - ta=ing into account the increase in in3entor1 as current assets# 0ust =now and add the e8"ected changes in
reser3es undeclared.
G - ta=ing into account the ta8 on the gains e8"ected after the de"reciation of an asset accounting) ,he gains cash
fro0 scra""ing the asset after owning di"htheria at the end of the "eriod su/Bect to ta8 this re"resents cash flow
within) such as the sale 3alue of the asset as scra") and the conse5uent cash flow e8ternal) and is ta8 the scra"
3alue which e8ceeded the carr1ing 3alue of the asset at the end of the "eriod#.
+ - with res"ect to the cash flows resulting fro0 financing and actress in interest rates on loans and re"a10ents
of these loans) cash outflows related to financing) 1ou need such as"ects of s"ecial treat0ent where does not ta=e
into account the feasi/ilit1 studies of the "ro"osals) /ut ta=e into account the /urden of funding interest# and
when we are stud1ing the return on e5uit1.
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,here are nu0erous studies on cor"orate go3ernance and share "rice in the "ast few 1ears was such as;
A/u Duwa1di?s stud1 2*11# entitled; J,he role of accounting infor0ation in the rationali@ation of ca"ital
s"ending decisions - An 20"irical Stud1 on the co0"anies listed on the Stoc= 28change of !alestine.J ,he ai0
of this stud1 was to identif1 the i0"ortance of the use of accounting infor0ation in the rationali@ation of the
decisions of ca"ital s"ending) and deter0ine the e8tent of the use of 0anage0ent in co0"anies listed in
!alestine Stoc= 28change of accounting infor0ation in the rationali@ation of the decisions of ca"ital s"ending)
and constraints that li0it this use) and to identif1 wa1s to e3aluate decisions in ca"ital s"ending /1 co0"anies
listed on the stoc= e8change. ,he stud1 showed 0an1 of the 0ost i0"ortant results; facing the 0anage0ent of
co0"anies listed on the !alestine 28change constraints lead to "oor use of accounting infor0ation in the
rationali@ation of the decisions of the ca"ital e8"enditure which) according to the 3iew"oint of the stud1 sa0"le.
,he stud1 reco00ended the need to strengthen the culture of the use of accounting infor0ation when 0a=ing a
decision and "lanning of ca"ital s"ending) and the need to de3elo" a strategic "lan for ca"ital in3est0ent "roBects)
and attention to control the outco0e of decisions in ca"ital s"ending after the i0"le0entation of the resolution.
A/u Ar0elh?s stud1 2**$# entitled; JGa"ital 7udgeting and "lanning /udgets in the industrial and
ser3ice co0"anies at Jordanian "u/lic shareholding.J ,he ai0 of this stud1 was to identif1 the e8tent of the use
of ca"ital /udgets and "lanning /udgets in the industrial and ser3ice co0"anies Jordanian "u/lic shareholding
and deter0ine the ad3antages and difficulties in the use of these t1"es of /udgets and to achie3e these goals
5uestionnaire was designed and distri/uted to 6*# as finance director and head of the +e"art0ent of Accounting
and accountant in the industrial and ser3ice co0"anies to contri/ute to the "u/lic Jordanian) and the "ercentage
of res"onding H $(.7# and was used in the statistical anal1sis "rogra0 statistical "ac=age for social sciences) the
results showed that 0ost co0"anies are using 0ethods de3elo"ed /ased on the discounted cash flow which ta=es
into account the ti0e 3alue of 0one1. ,he stud1 reco00ended the need to enhance the e8"erience of theoretical
3iews that e3aluates ca"ital "roBects to fa0iliari@e the0 with the 3iews theor1 that co3ers 3arious as"ects of the
resolutions of ca"ital s"ending) and the need to increase the use of 0ethods of e3aluating in3est0ent "roBects
ad3anced.
Da0@a?s stud1) 2**7# entitled; J,he role of accounting infor0ation in the rationali@ation of
in3est0ent decisions in the 0ar=et A00an Stoc= 28change.J ,he ai0 of this stud1 was to test the e8tent of the
/enefit of the infor0ation accounting for the decision 0a=ers of the in3est0ent co0"anies listed on the A00an
Financial Ear=et) and test the ho0ogeneit1 in accounting re"orts that ha3e /een disclosed /1 these co0"anies)
and ha3e the researcher e8tra"olating the anal1tical results of "re3ious studies to consolidate the scientific
as"ects of research fro0 2**9 -199(#) and 5uantitati3e anal1sis of the 5ualit1 of each of the re"orts and the
infor0ation disclosed /1 these co0"anies and relied u"on /1 in3estors to rationali@e their in3est0ent decisions)
and the stud1 found a discre"anc1 /etween the co0"anies in the 5ualit1 of accounting infor0ation disclosed) and
the 5ualit1 of accounting re"orts are used) the stud1 reco00ended re5uiring that co0"anies disclose the
a""ro"riate infor0ation) and sufficient to rationali@e in3est0ent decisions in this 0ar=et.
7ennouna) et al) stud1 2*1*# entitled JI0"ro3ed ca"ital /udgeting decision 0a=ing; e3idence fro0
Ganada.J ,he "ur"ose of this stud1 is to e3aluate current techni5ues in ca"ital /udget decision 0a=ing in Ganada)
including real o"tions) and to integrate the results with si0ilar "re3ious studies. A 0ail sur3e1 was conducted)
which included $$ large fir0s in Ganada. ,rends towards so"histicated techni5ues ha3e continuedA howe3er)
e3en in large fir0s) 17 "ercent did not use discounted cash flow +GF#. &f those which did) the 0aBorit1 fa3ored
net "resent 3alue N!'# and internal rate of return IRR#. ,here is an o3erall /etween one in ten) to one in three
were not correctl1 a""l1ing certain as"ects of +GF. &nl1 $ "ercent used real o"tions. &ne li0itation is that the
sur3e1 does not indicate wh1 0anagers continue using less ad3anced ca"ital /udgeting decision techni5ues. A
second is that choice of "o"ulation 0a1 /ias results to large fir0s in Ganada. ,he 0ain area for 0anage0ent
focus is real o"tions. &ther areas for i0"ro3e0ent are ad0inistrati3e "rocedures) using the weighted a3erage
cost of ca"ital KAGG#) adBusting the KAGG for different "roBects or di3isions) e0"lo1ing target or 0ar=et
3alues for weights) and not including interest e8"enses in "roBect cash flows. A s0all "ro"ortion of 0anagers
also need to start using +GF. ,he e3aluation shows there still re0ains a theor1-"ractice ga" in the detailed
ele0ents of +GF ca"ital /udgeting decision techni5ues) and in real o"tions. Further) it is 3alua/le to ta=e stoc=
of a conce"t that has /een de3elo"ed o3er a nu0/er of 1ears. Khat this "a"er offers is a fine-grained anal1sis of
in3est0ent decision 0a=ing) a s1nthesis and integration of se3eral studies on +GF where new co0"arisons are
0ade) ad3ice to 0anagers and thus o""ortunities to i0"ro3e in3est0ent decision 0a=ing.
-ha0ees) et al) stud1 2*1*# entitled JGa"ital /udgeting !ractices in the Jordanian industrial
cor"orations.J ,he "ur"ose of this "a"er is to "ro3ide additional e0"irical e3idence a/out ca"ital /udgeting
"ractices in an e0erging econo01. ,he stud1 utili@es a 5uestionnaire and inter3iew to collect data fro0
res"ondents. ,he results show that the JIG gi3e al0ost e5ual i0"ortance to the discounted and undiscounted cash
flow 0ethods in e3aluating ca"ital in3est0ent "roBects. It a""eared also that the 0ost fre5uent used techni5ue is
the "rofita/ilit1 inde8 followed /1 the "a1/ac= "eriod. 7ased on these results) the researchers reco00end
"utting a great attention to a""l1 the conce"ts and techni5ues of ca"ital /udgeting in an a""ro"riate 0anner. ,he
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cor"orations should also consider i0"ortance of infor0ation technolog1 and its a""lications in ca"ital /udgeting.
,his is the first stud1 a""lied on the ca"ital /udgeting "ractices and its related issues in the JIG.

7$ Stud Instrument
After the co0"letion of the stud1 to deter0ine the "ro/le0 and 5uestions and h1"otheses) the researcher
"re"ared a 5uestionnaire stud1 and de3elo"s a wa1 that co3ers all 3aria/les 0odel stud1) which included a
5uestionnaire stud1 in its final for0 to the following "arts;
(.1 Perso"al a"d occuatio"al characteristics) ,hese are characteristics se8) and scientific s"eciali@ation) and
educational 5ualification) "osition and career) and the nu0/er of 1ears of e8"erience) and "rofessional
certification#.
(.2 *"dee"de"t variables) ,he accounting infor0ation) na0el1) Gash inflows and outflows) the annual cash
outflows) e8"ected cash flows at the end of the ter0 of the asset in3est0ent) o"erating cash flows /e1ond the
ta8##.
(.( $ee"de"t variable) ,he de"endent 3aria/le / +ecisions Ga"ital e8"enditure# for industrial co0"anies
listed at A00an Stoc= 28change.
(.4 Study *"strume"t scale
Fi3e "oints Li=ert scale has /een selected) for /eing one of the 0ost 0etrics used to 0easure the o"inions and
res"onses) due to its ease of understanding ) indicates where the stud1 sa0"le under test for the e8tent of their
agree0ent for each "aragra"h of the 5uestionnaire as follows;

Strongl Disagree Disagree &ot sure Agree Strongl Agree
# 6 7 5 8
Das /een the ado"tion of a 0easure of the degree e3aluation of the stud1 sa0"le with the "rinci"les of
accounting infor0ation) is di3ided into three le3els) where the calculated cut-off grade and /1 di3iding the
"roduct of the difference /etween the highest 3alue of the scale (# and the lowest 3alue in it 1# at three le3els)
na0el1) that the cut-off grade are as follows; M(-1# N 9 O 1.99P
,hus) the three le3els as follows;
A - Low degree of agree0ent 1 - 2.99#.
7 - ,he degree of agree0ent Eediu0 2.9% - 9.67#.
G - A high degree of agree0ent 9.6$ - (#.
,est standard was identified a0ounting of 9# through di3iding the su0 of the highest 3alue for the scale (# and
the lowest 3alue in which 1# o3er 2#) that is ( Q1 # N 2 O 9 ) and for the "ur"ose of diagnosis of "ositi3e and
negati3e res"onses to the stud1 sa0"le ) and as follows;
Li0it of the res"onse negati3e are 1 - 2.99#.
Li0it of the res"onse "ositi3e are 9 - (#.
,herefore) stud1 instru0ent which is directed to stud1 sa0"le su/Bects in industrial co0"anies o"erating in
Jordan is consisted of (*# ite0s) as descri/ed in A""endi8 1#.

(.5 *"strume"t +alidity
Face 3alidit1 has /een 3erified through a grou" of e8"erts and referees who had e8"erience and =nowledge in
accounting and 0ethodolog1 of scientific research and a""lied statistics to ta=e ad3antage of their e8"ertise and
their stoc=s of =nowledge) 0a=ing the tool 0ore accurate and o/Becti3e 0easure0ent. It has reached the nu0/er
of 1*#. ,he "ur"ose /ehind 5uestionnaire was to 3erif1 the affiliation of "aragra"hs to the 3aria/les of the 0odel)
and the "aragra"hs language for0ulation accurac1. It has /een ta=ing into account all the o/ser3ations of e8"erts
and referees) where /een reworded so0e "aragra"hs of 5uestionnaire and delete others of the0) and add so0e of
the other "aragra"hs of the di0ensions of the 3aria/les of the 0odel) so that the 5uestionnaire was "re"ared in its
final for0 contained in A""endi8 1#.

(.! *"strume"t Reliability
,o chec= the relia/ilit1 of stud1 tool) the researchers were using Gron/ch Al"ha instru0ent 3aria/les relia/ilit1
coefficients to 0easure the internal consistenc1 of the 5uestionnaire "aragra"hs#. ,he "ercentage of sta/ilit1 of
the instru0ent o3erall was $9.(H#) which is 3er1 high in order to a""ro3e stud1 results) the 0ean "ercentage
that the internal consistenc1 of the 3erte/rae high) since the acce"ta/le "ercent to generali@e Du0anities and
Social Research results are 6*H# or 0ore) and as shown in ,a/le 2# as follows;
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1**
'able (6) Results of stud tool reliabilit test (internal consistenc of the ,uestionnaire paragraphs)
'he proportion of
stabilit
Cronbach9s alpha
)Reliabilit
coefficient(
&umber of
paragraphs
*ariables model stud
H$%.9 *.$%9 1* Gash inflows and outflows
H7%.% *.7%% 1* Gash outflows annual
H7(.9 *.7(9 1* 28"ected cash flows at the end of the
original in3est0ent
H$*.2 *.$*2 1* &"erating cash flows /e1ond the ta8#
H$2.2 *.$22 1* Share "rice
230$8 1$308 81 'he tool as a !hole

(.# Statistical ,ech"i-ues
After he had finished a researcher fro0 the "rocess of collecting data on 3aria/les 0odel stud1) ha3e /een
entered for Go0"uter -0ail for the "ur"ose of e8tracting statistical results needed) where it was drawing on so0e
statistical 0ethods a3aila/le in software "ac=ages Statistical Social Sciences S!SS#) in order to "rocess the data
that ha3e /een o/tained through the stud1 field of the sur3e1ed sa0"le) s"ecificall1 the researcher used statistical
0ethods the following;
#: Cronbach9s alpha coefficient" was used to test the relia/ilit1 tool to stud1 under which the data were
collected) in other words) is used to test internal consistenc1 of the "aragra"hs of the 5uestionnaire#.
6: ;re,uencies and percentages" the1 are used to identif1 the characteristics of the stud1 sa0"le of accountants
and auditors in industrial co0"anies o"erating in Jordan contri/ution listed on the AS2.
7: <ean" it is used to identif1 the le3el of se3erit1 of the answer to the sa0"le of the stud1 on the "rinci"les of
cor"orate go3ernance in industrial cor"orations o"erating in Jordan.
5: Standard deviation" it is used to deter0ine the dis"ersion of the stud1 sa0"le answers fro0 the 3alues of the
arith0etic a3erage.
8: 'est (*I;) *ariance Inflation ;actors" ,his test is used to 3erif1 the e8istence of the "ro/le0 of
o3erla""ing 0ulti"le linear Eulticollinearit1# /etween the inde"endent 3aria/les) the lac= thereof.
4: 'est Kolmukrov : Samir &ov" &ne-Sa0"le --S ,est# was used to 3erif1 that the data 3aria/les of the stud1
are su/Bect to the nor0al distri/ution +istri/ution Nor0al# or not.
=: Simple linear regression analsis" has /een used to 0easure the role of accounting infor0ation each
se"aratel1 on the ca"ital e8"enditure decisions in the industrial cor"orations listed in A00an Stoc= 28change.
3: <ultiple linear regression analsis of the progressive (Step!ise)" was used to 0easure the i0"act of the
accounting infor0ation on the ca"ital e8"enditure decisions in the industrial cor"orations listed in A00an Stoc=
28change.

5$ Results
4.1 Results of the main test the hypothesis
No statisticall1 significant effect at the le3el of significance R F *.*(#) accounting infor0ation to 0a=e decisions
in Ga"ital e8"enditure in industrial cor"orations listed on the A00an Stoc= 28change. ,he results of testing the
h1"othesis 0aBor general) to ha3e a statisticall1 significant effect at the le3el of significance R O *.*(#) for the
three t1"es of accounting infor0ation and of / A/out the e8"ected cash flows at the end of the ter0 of the asset
in3est0ent) and infor0ation cash inflows and outflows) and cash flow infor0ation o"erational outflows ta8##)
the decision-0a=ing "rocess Ga"ital e8"enditure in industrial cor"orations listed in A00an Stoc= 28change. It
is clear fro0 the "re3ious result to increase awareness of the de"art0ents of industrial co0"anies contri/ute
a/out accounting infor0ation) will contri/ute significantl1 to the ad3ance0ent of the "rocess of 0a=ing
decisions Ga"ital e8"enditure in the co0"an1?s 0entioned.

4.2 Results of the test sub hypothesis
4.2.1 ,est results of the first sub& hyothesis
,he results of the first su/-test the h1"othesis) the "resence of statisticall1 significant effect at the le3el of
significance R O *.*(#) for the infor0ation of the cash inflows and outflows on the decision-0a=ing "rocess
Ga"ital e8"enditure in industrial cor"orations in A00an Stoc= 28change. It is clear fro0 this that the increased
awareness of the de"art0ents of industrial co0"anies to contri/ute to the infor0ation 0entioned) will contri/ute
significantl1 to the ad3ance0ent of the "rocess of 0a=ing decisions ca"ital e8"enditure in the co0"anies
0entioned.
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'able (7) the results of the first test sub:hpothesis
<ean Result of hpothesis ' Significant ' Scheduled ' Calculated
7$07 Re>ect 1$111 #$04 #3$46=

4.2.2 ,est results of the seco"d sub& hyothesis
,he results of the second su/-test the h1"othesis) the "resence of statisticall1 significant effect at the le3el of
significance R O *.*(#) for the infor0ation of annual cash outflows on the decision-0a=ing "rocess Ga"ital
e8"enditure in industrial cor"orations listed in A00an Stoc= 28change. It is clear fro0 this that the increased
awareness of the de"art0ents of industrial co0"anies to contri/ute to the infor0ation 0entioned) will contri/ute
significantl1 to the ad3ance0ent of the "rocess of 0a=ing decisions ca"ital e8"enditure in the co0"anies
0entioned.

'able (5) the results of the second test sub:hpothesis
<ean Result of hpothesis ' Significant ' Scheduled ' Calculated
5$#5 Re>ect 1$111 #$04 #6$66#

4.2.( ,est results of the third sub& hyothesis
,he results of the second su/-test the h1"othesis) the "resence of statisticall1 significant effect at the le3el of
significance R O *.*(#) for the infor0ation of the cash flows at the end of the ter0 of the asset at the annual
in3est0ent decision-0a=ing "rocess Ga"ital e8"enditure in industrial cor"orations listed in A00an Stoc=
28change. It is clear fro0 this that the increased awareness of the de"art0ents of industrial co0"anies to
contri/ute to the infor0ation 0entioned) will contri/ute significantl1 to the ad3ance0ent of the "rocess of
0a=ing decisions ca"ital e8"enditure in the co0"anies 0entioned.

'able (8) the results of the third test sub:hpothesis
<ean Result of hpothesis ' Significant ' Scheduled ' Calculated
5$66 Re>ect 1$111 #$04 6#$##8

4.2.4 ,est results of the fourth sub& hyothesis
,he results of the second su/-test the h1"othesis) the "resence of statisticall1 significant effect at the le3el of
significance R O *.*(#) infor0ation flows) o"erating cash outflows ta8# on the decision-0a=ing "rocess Ga"ital
e8"enditure in industrial cor"orations listed in A00an Stoc= 28change. It is clear fro0 this that the increased
awareness of the de"art0ents of industrial co0"anies to contri/ute to the infor0ation 0entioned) will contri/ute
significantl1 to the ad3ance0ent of the "rocess of 0a=ing decisions ca"ital e8"enditure in the co0"anies
0entioned.

'able (4) the results of the fourth test sub:hpothesis
<ean Result of hpothesis ' Significant ' Scheduled ' Calculated
5$#4 Re>ect 1$111 #$04 #=$887

8$ Recommendations
1 - ,he stud1 reco00ends the need to "ro3ide accounting infor0ation with a high degree of credi/ilit1 and
o/Becti3it1 to increase relia/ilit1 in ca"ital s"ending decisions and thus earn the trust of dealers in the A00an
Stoc= 28change.
2 - ,he stud1 reco00ends re5uiring co0"anies listed in A00an Stoc= 28change to "u/lish all the financial
infor0ation in a ti0el1 0anner) as well as the introduction of a range of new financial instru0ents that are not
used in the A00an Stoc= 28change.
9 - ,he stud1 reco00ends the need to identif1 the nature of the infor0ation that 1ou need in each categor1 and
the ad0inistrati3e account for the different categories of infor0ation used and the 0ulti"licit1 of their needs) as
well as "ro3iding the necessar1 infor0ation for decision-0a=ing 0odels) so as to raise the efficienc1 and
effecti3eness of accounting infor0ation.
% - ,he stud1 reco00ends the need for future studies si0ilar in other co0"anies) which is the stud1 of other
3aria/les related to other t1"es of accounting infor0ation so that different 3aria/les addressed in this stud1) with
the need to 0easure the i0"act of such infor0ation on the decision-0a=ing "rocess in ca"ital s"ending in the
co0"anies under stud1) and stud1 the i0"act of accounting infor0ation on each of the financial and o"erational
"erfor0ance.

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1*2
References
1 - A/u Ar0elh) Ah0ed Eoha00ed) 2**$#. Ga"ital 7udgeting and "lanning /udgets in the industrial and
ser3ice co0"an1?s Jordanian "u/lic shareholding) un"u/lished !h.+. ,hesis) ,he Ara/ Acade01 for 7an=ing
and Financial Sciences.
2 - A/u Doweidi) Nihad Isaac A/del-Sala0) 2*11#. ,he role of accounting infor0ation in the rationali@ation of
ca"ital s"ending decisions - An 20"irical Stud1 on the co0"anies listed on the !alestine Stoc= 28change)
6n"u/lished EA ,hesis) Isla0ic 6ni3ersit1.
9 - Da0@a) Eohiuddin) 2**7#. ,he role of accounting infor0ation in the rationali@ation of in3est0ent decisions
in the 0ar=et an 20"irical Stud1 in A00an Stoc= 28change) Bournal of econo0ic S legal sciences) +a0ascus
6ni3ersit1) 'olu0e 29) No.1.
% - Danafi) A/dul Ihaffar and Tr1a=s) Ras0ia 4a=i) 2**2#) A""roach in the conte0"orar1 financial
0anage0ent) +ar AlBa0aha ) "". %1) A00an) Jordan.
( - Danafi) A/dul Ihaffar) 2**2#) Financial Eanage0ent - the entrance to 0a=e decisions) +ar AlBa0iah of
"u/lishing and distri/ution) "". 2(%) A00an) Jordan.
6 - -hanfar) "ro-Radi and 7isho"s) Ihassan Al Falah) 2*11#) Anal1sis of Financial State0ents) +ar Al0asera
for "u/lication and distri/ution) "". 1() A00an) Jordan.
7 - Rawashda) -haled) 2**6#) Eethods for e3aluating ca"ital s"ending /udgets and "ractices of ca"italis0 in
the industrial and ser3ice co0"anies to contri/ute to Jordan) 6n"u/lished EA ,hesis) Uar0ou= 6ni3ersit1)
Jordan.
$ - Shei=h) Eustafa Fah0i) 2**$#) Financial Anal1sis) "". 1%) A00an) Jordan.
9 - ,aher) As0ahan EaBid and "u0ice) Eaha Eahdi) 2*19#) Introduction to Eanage0ent Infor0ation S1ste0s)
+ar Kael) "". 121) A00an) Jordan.
1* - Alta0ah) Dassan Uassin) 2*1*#) the theor1 of decision-0a=ing 5uantitati3e anal1tical techni5ue) +ar Saffa
for "u/lication and distri/ution) "". 2*) A00an) Jordan.
11 - -dawi) ,alal) 2**$#) 23aluation of in3est0ent decisions) +ar Ua@ori for "u/lication and distri/ution) "". 9)
A00an) Jordan.
12 - Eoses) Shu=air1 Nuri) Al@ar=an) Saleh ,aher) Alhadad) Eoha00ed Kasee0) and Aldoa=at) Euhannad Al
Fa1e@) 2*12#) In3est0ent Eanage0ent)#) +ar Al0asera for "u/lication and distri/ution) 1st edition) "". 119)
A00an) Jordan.
19- 7ennouna) -.) Eeredith) I.and Eerchant) ,.) 2*1*#) I0"ro3ed ca"ital /udgeting decision 0a=ing; e3idence
fro0 Ganada) Eanage0ent +ecision) 'ol. %$) iss; 2) ""22(-2%7.
1% - -ha0ees) 7.Ah0ad) Al-Fa1ou0i) N.) and Al-,hunei/at) A.) 2*1*#) Ga"ital /udgeting !ractices in the
Jordanian industrial cor"orations) International Journal of Go00erce and Eanage0ent. 'ol. 2*) iss; 1) "" %9-69.



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1*9
Appendix #
.uestionnaire
+ear Res"ondent;
Ireetings;
,he researchers ha3e conducted a stud1 tagged An in3estigation of the accounting infor0ation and its role in
capital expenditure decisions in the industrial co0"anies listed in A00an Stoc= 28change#) a field stud1 on
industrial co0"anies in Jordan listed in A00an Stoc= 28change)
-indl1 re5uested to answer all the 5uestions 1ou dee0 fit and that through +e"art0ent
1. Ieneral 0anager
2. .Eanaging +irector
9. Financial +irector
%. Internal Audit Eanager

Ke are confident that the /est source to gain access to the re5uired infor0ation) the fact that 1ou "eo"le of
e8"erience and co0"etence. !lease =indl1 answer the 5uestions attached) note that the1 will /e dealing with
these answers confidentiall1) and that use will /e for research "ur"oses onl1) ho"ing to return the results of this
stud1 /enefit industrial co0"anies listed in A00an Stoc= 28change and scientific institutions together) with our
sincere than=s and a""reciation to 1ou for 1our effort in order to acco0"lish this stud1.

Section I" personal information and functional"
V !lease =indl1 "ut signal W# at the a""ro"riate choice;
1- Iender; Eale Fe0ale
2- Scientific s"eciali@ation; Accounting 7usiness Ad0inistration Financial and other /an=ing
9- Tualification; +i"lo0a 7achelor Easters +octorate
%- Jo/ title; Ieneral 0anager - Eanaging +irector - Financial +irector - Internal Audit Eanager
(- Uears of 28"erience; Less than ( Uears 6-1* Uears 11-1( 1ears 16 Q 1ears
6- !rofessional Gertificate; G!A GEA JG!A GIA

Section II" Accounting Information"
1- Accounting infor0ation related to the cash flows fro0 inflows and;
1 2 9 % ( !aragra"hs
,he co0"an1 relies on infor0ation the cash inflows and outflows while doing 3arious
acti3ities in 0a=ing their in3est0ent decisions.
1
Gontri/utes to the use of infor0ation related to increased s"ecificit1 degree of certaint1
a/out the decision alternati3es.
2
Is a3aila/le at the co0"an1?s 0anage0ent infor0ation a/out the 5ualit1 of the cash
inflows and outflows characteri@ed /1 a high degree of clarit1.
9
A3aila/le to the 0anage0ent of the co0"an1 sufficient infor0ation regarding the
"urchase of fi8ed assets) which 0a1 ta=e "lace o3er se3eral 1ears.
%
A3aila/le to the 0anage0ent of the co0"an1 sufficient infor0ation regarding the
auto0atic increase in current assets.
(
A3aila/le to the 0anage0ent of the co0"an1 sufficient infor0ation regarding the
e8"enses of installation of 0achiner1 and "re"ared for the run.
6
,he co0"an1 relies on the a/ilit1 of accounting infor0ation with "redicti3e +e"art0ent
assists in the for0ulation of "lans for the future and design.
7
,he Go0"an1?s 0anage0ent to carr1 out studies on the econo0ic feasi/ilit1 of "roBects
for the "ur"oses of decision-0a=ing ca"italis0.
$
7ased on the co0"an1?s 0anage0ent "rocesses ca"italis0 rele3ant fi8ed assets for
"roBects.
9
+e"end on the co0"an1?s o"erations /an=notes and co00ercial "a"er that is released
to the order of others.
1*


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2- Accounting infor0ation related to the cash flows /e1ond the annual;
1 2 9 % ( !aragra"hs
,he 0anage0ent of the co0"an1 sales acti3it1 of the 0ost i0"ortant annual cash
outflows within her.
11
,he co0"an1 is the /urden and e8"ense of cash for o"erations as a cash flow /e1ond
the0 o3er the econo0ic life of the asset in3est0ent.
12
,a=e into account the co0"an1?s 0anage0ent antici"ated changes in current assets
during the "eriod of circulation.
19
Gan /e classified as ca"ital e8"enditures as fi8ed assets tangi/le and intangi/le#. 1%
Should /e on the 0anage0ent of the co0"an1 to =now the nature and "ur"ose of the
ali0on1 granted /1 the annual ca"ital ser3ices.
1(
Should /e on the 0anage0ent of the co0"an1 not to re"eat the e8change ca"ital
e8"enditure during nor0al acti3it1 c1cle has.
16
2nBo1 the Go0"an1?s 0anage0ent of ca"ital e8"enditures for 0ore than a 1ear. 17
Glassification of ca"ital e8"enditure in the co0"an1 /1 t1"e of acti3it1 and nature. 1$
,he co0"an1 o"erates 19 to "ro3ide the necessar1 li5uidit1 and guarantee to co3er
e0ergenc1 situations that 0a1 face the "roduction "rocess.
19
,he co0"an1 see=s to "ro3ide the li5uidit1 needed to co3er the re5uire0ents of the
wor= and the "roduction "rocess.
2*

9 - Accounting infor0ation relating to the e8"ected cash flows at the end of the ter0 of the asset;
1 2 9 % ( !aragra"hs
Go0"an1 is interested in entering the cash flows related to assets. 21
Go0"an1 is interested in accounting infor0ation relating to the e8"ected cash flows at
the end of the ter0 of the asset in3est0ent.
22
Go0"an1 has the ca"acit1 to assess the assets /efore the1 are sold as scra". 29
,a=e the co0"an1?s 0anage0ent decisions at the wrong neglect 3alue of the asset. 2%
Recogni@es the co0"an1?s 0anage0ent e8"enses scra""ing "arent and not /e
o3erloo=ed.
2(
Is the registration of all e8"enses related to assets a""ro"riate for decision-0a=ing
ca"italis0C
26
Are a co00it0ent download de"reciation costs and e8"enses) a""ro"riate to ta=e the
a""ro"riate decisionsC
27
,he co0"an1 see=s to "reser3e the 3alue of the assets of the truth /1 conducting
feasi/ilit1 studies.
2$
Gontains accounting infor0ation on the ade5uac1 of infor0ation to 0a=e decisions
suita/le ca"italis0.
29
Insurance accounting infor0ation for "eo"le sta=eholders in a ti0el1 0anner hel"s to
ta=e the a""ro"riate decisions.
9*

Research Journal of Finance and Accounting www.iiste.org
ISSN 2222-1697 !a"er# ISSN 2222-2$%7 &nline#
'ol.() No.16) 2*1%

1*(

% - Accounting infor0ation related to the cash flows fro0 o"erating /e1ond the ta8#;
1 2 9 % ( !aragra"hs
Is ta8 accounting infor0ation in 0a=ing decisions affecting ca"ital e8"enditureC 91
+efines the wa1 the co0"an1 ownershi" "er0itted use of the ta8 rate that would
0a8i0i@e sa3ings.
92
,he co0"an1 is the a0orti@ation of assets within the "eriod allowed /1 the ta8) e3en if
the 3alue of the asset at the end of the "eriod.
99
,he co0"an1 o"erates to add the e8"ected changes in reser3es undeclared stoc=#. 9%
Recogni@es the co0"an1?s ta8 i0"osed on gains after the e8"ected de"reciation of an
asset accounting.
9(
Should /e a3aila/le in the accounting infor0ation sufficient a0ount of o/Becti3it1) for
the "ur"ose of achie3ing an ade5uate return for the in3estor.
96
,he need for the accounting infor0ation neutralit1 and i0"artialit1) in order to 0a=e
good decisions.
97
Should /e dis"la1ed in honest accounting infor0ation in order to reflect the financial
"osition of the co0"an1.
9$
Go0"an1 a3oids ta8es /1 "ri3ileges granted to the0 through new in3est0ents. 99
Should /e on the co0"an1?s 0anage0ent co00it0ent to a "olic1 of consistenc1 with
the "rinci"les and 0ethods of accounting.
%*

Section III" -aragraphs relating to the dependent variable (Capital expenditure decisions)"
1 2 9 % ( !aragra"hs
,he "rocess of Ga"ital e8"enditure decisions /1 senior 0anage0ent in the co0"an1. %1
,he co0"an1 relies on scientific foundations in the "rocess of 0a=ing in3est0ent
decisions and decisions ta=en in order to /e rational.
%2
,he co0"an1 is /ased in 0a=ing decisions related to ca"ital e8"enditure forecasts. %9
Affects decision-ca"italist financial structure of the co0"an1) it should ta=e into
account the relationshi" /etween return and ris=.
%%
Should /e the decision of the ca"italist ta=en /1 the co0"an1 in line with its o/Becti3es
and its "olic1.
%(
Should /e on the co0"an1?s decision to ta=e the ca"ital in a 0easured wa1 and not
inconsistent with its goals.
%6
Is an in3est0ent decision ta=en in the co0"an1 of the 0ost dangerous decisions) cannot
/e undone when ta=en.
%7
$ includes a decision to in3est huge financial closel1 for a long ti0e in order to get a
return in the future.
%$
Should /e the decision-0a=er to ado"t an a""ro"riate strateg1 ser3e the co0"an1 and
the in3estor ali=eC
%9
+e"end on the co0"an1?s e8"enses re"lace0ent) e8"ansion) i0"ro3e0ent) strategic)
and contractual# in the decision-0a=ing ca"italis0.
(*

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