Maximizing Shareholders' Wealth: New Techniques Revolutionize Investment Decision-Making
The article reviews different ways companies decide which projects to invest in to make the most money for their shareholders. They looked at techniques like Net Present Value, Internal Rate of Return, and Payback. The study found that Net Present Value is becoming more popular because it's seen as a reliable way to evaluate projects. The size of the company, how much debt it has, and the CEO's characteristics can influence which techniques are used. The study suggests using real options techniques to connect financial goals with business strategy in today's complex business world.