Published Nov 24, 2014
Dolores Guerrero José A. Gómez-Limón


This paper aims to develop a novel capital budgeting method to improve the quality of the appraisal process for productive investments by decomposing the total value that is created by the new assets into two components: financial value and nonfinancial capital value, the latter stemming from the intellectual capital of the firm. We propose a methodology based on analytic hierarchy process (AHP). Within the model, four main criteria (financial capital, human capital, structural capital, and relational capital), several subcriteria and the investment alternatives are defined. In order to determine the total value of each alternative, chief executive officer (CEO) preferences are required. A case study on the agrifood sector illustrates the model empirically. This illustrative application evidences the need to consider the impact of productive investments on firms’ intangible assets, as this impact actually affects the choice of optimal investment alternative in the real world.


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captial budgeting, multicriteria decision making, nonfinancial capital value, intellectual capital, AHP

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