Determinants of payback method application among selected Malaysian public listed companies

Zuraida Naim (2007) Determinants of payback method application among selected Malaysian public listed companies. Masters thesis, Universiti Malaysia Sabah.

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Abstract

This research attempts to assess the determinants of the application of payback method among public listed companies in Malaysia. A total of twenty four (24) face to face interviewed were conducted. In addition, seventy six (76) questionnaires were sent to Chief Financial Officer of selected public listed companies. However, only nine (9) of them responded within the allocated time. Six (6) independent factors were examined and these are (i) cost and benefit consideration, (ii) sources of funding, (iii) size of average annual expenditure, (iv) types of investment, (v) bankers' preference, and (vi) board of directors preference. The findings indicate that only three of these variables show significant influence on the application of the payback method. Namely, (i) cost and benefit consideration, (ii) sources of funding, and (iii) types of investment. It is obvious that many companies like to adopt payback method in evaluating investment proposal before making the finalized decision. Due to the some theoretical weaknesses of this method, they should adopt other methods as well to ascertain that their companies are in secured position.

Item Type:	Thesis (Masters)
Keyword:	Payback method, Public listed companies, Funding, Investment, Cost and benefit consideration
Subjects:	H Social Sciences > HG Finance > HG1-9999 Finance > HG4001-4285 Finance management. Business finance. Corporation finance
Department:	SCHOOL > School of Business and Economics
Depositing User:	DG MASNIAH AHMAD -
Date Deposited:	11 Aug 2025 10:44
Last Modified:	11 Aug 2025 10:44
URI:	https://eprints.ums.edu.my/id/eprint/44875

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