In particular the decision analysis techniques that

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Unformatted text preview: ndication of current capability ascertained in Chapter 5, the findings confirm the trend observed in previous quantitative research studies that there is a gap between current theory in investment appraisal and current practice. However, unlike these survey-based studies, where the research methodology used prohibited further investigation of such issues, the current study uses insights from the semi-structured interviews, together with behavioural decision theory literature, to suggest why this might be the case. Chapter 7 uses the data presented in Chapters 5 and 6 to produce a ranking of the companies according to their usage of decision analysis techniques in investment appraisal decision-making. The assumption that any value added to the company from using a decision analysis approach will ultimately affect the organisation’s bottom-line is justified. This assumption is then used to investigate the relationship between the ranking of organisations by their use of decision analysis in investment appraisal decision-making and business success statistically by using criteria that are indicative of organisational performance. The final chapter, Chapter 8, brings together the information gathered for the thesis and provides the answers to the research questions posed in Chapter 1. It sets out the conclusions that can be drawn from the research. In particular, the implications of the results to the theoretical debate between the decision analysts and behavioural decision theorists are highlighted. The limitations of the research presented in this thesis are discussed and this leads into the identification of areas for future research that arise from the current study. 9 Chapter 2 Literature Review 10 2.1 INTRODUCTION This chapter presents the literature review for the current study. It draws on the existing academic literature on investment decision-making to highlight the gaps in this literature that the research questions presented in Chapter 1 are drawn from. The literature review is structured so that attention is focussed on the source of each of the three research questions in turn. 2.2 RISK AND UNCERTAINTY The first section of the literature review emphasises the centrality of risk and uncertainty to investment decision-making by focusing on the following three questions: 1. How does the academic investment decision-making literature conceptualise risk and uncertainty? 2. How do investment decision-makers conceptualise risk and uncertainty? 3. How do these decision-makers cope with risk and uncertainty in investment decision-making? Investigating the methods of coping with risk and uncertainty adopted by investment decision-makers highlights the role of quantitative techniques. This leads into identification of the need for a study that ascertains which of the tools and techniques that are presented in the decision theory literature are most appropriate for investment appraisal. This is the first research question that this thesis aims to answer. Consider the first question proposed above. Risk and uncertainty are in...
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This document was uploaded on 03/30/2014.

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