Capital budgeting practices: A survey of Central and Eastern European firms

We survey 400 executives in ten countries in Central and Eastern Europe (CEE) and report the results of their companies' capital budgeting practices. We find that capital budgeting practices in CEE countries are influenced mostly by firm size, multinational culture, firms' goals, and the presence of code of ethics, and to a lesser extent, by executive ownership, number of projects analyzed, and target leverage. We compare our results with prior studies and find significant variations in capital budgeting practices across 35 countries, among high, upper middle, and lower middle income countries, and across seven geographic regions.