CAPITAL BUDGETING: THE ROMANIAN UNIVERSITY PROFESSORS’ POINTS OF VIEW

This study aims at validating the points of view of the Romanian finance universityprofessors regarding capital budgeting. The study is original and important in the sametime, taking into consideration that their opinions, due to their vocation of educators, mayrepresent the starting point for debates on the most suitable methods and techniques used inthe practice of this field. It can be noticed that the dominant points of view converge to therecommendations of the main reference works in the domain of corporate finance. Hence,indicators like net present value, internal rate of return or profitability index are the mostpreferred. Among the techniques of risk quantification, the sensitivity analysis is consideredas the most suitable, followed by the Monte Carlo method and the scenarios technique. As forthe discount rate used for the investment projects analysis, the most numerous respondentsrecommend the weighted average cost of capital.Secondly, this study brings some insights on the profile of the university professors withcompetences in the field of capital budgeting. We can derive the conclusion that theireducation level is high, most of them having accomplished their university studies with acurricula adequate to the principles of a market economy. More than half of the respondentsalso have investments consultancy activities.