Does National Culture Impact Capital Budgeting Systems?
We examine how national culture impacts organisational selection of capital budgeting systems to develop our understanding of what influence a holistic formulation of national culture has on capital budgeting systems. Such an understanding is important as it would not only provide a clearer link b...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
University of Wollongong
2017-06-01
|
| Series: | Australasian Accounting, Business and Finance Journal |
| Subjects: | |
| Online Access: | http://ro.uow.edu.au/aabfj/vol11/iss2/4 |
| Summary: | We examine how national culture impacts organisational selection of capital budgeting systems to develop our
understanding of what influence a holistic formulation of national culture has on capital budgeting systems.
Such an understanding is important as it would not only provide a clearer link between national culture and
capital budgeting systems and advance extant literature but would also help multinational firms that have
business relationships with Indonesian firms in suitably designing strategies. We conducted semi-structured
interviews of selected finance managers of listed firms in Indonesia and Australia. Consistent with the
contingency theory, we found that economic, political, legal and social uncertainty impact on the use of
capital budgeting systems. The levels of uncertainty were higher in Indonesia than Australia and need to be
reckoned in the selection of capital budgeting systems used by firms. We also found that firms are influenced
by project size and complexity, when selecting capital budgeting systems. |
|---|---|
| ISSN: | 1834-2000 1834-2019 |