ABSTRACT
The study was designed to analyze the capital
budgeting in the portfolio management of a firm. It looked at current year
revenue based on new products developed. The data was obtained from articles,
journals and were analyzed by ordinary least square (OLS) using SPSS software.
The survey research was con ductèd on 10 (sample size) companies randomly
selected. The result also showed that capital budgeting plays an important role
in the portfolio management of companies in Nigeria. The coefficient
determination R-square of 0.909 implied that 90.9% of sample variation is the
dependent variable. The result shows that business fail because of lack of
feasibility study or proper planning before investing in portfolio because
there is little or no application of capital budgeting technique to selecting
portfolio. It is therefore recommended that companies should make use of
capital budgeting to assist them efficiently to construct, evaluate and measure
the performance of their portfolio. It is also important that a firm maintains
relevant cash flow that will support ciny investment decision. Based on the
findings diversification of investment is encouraged to help offset the poor
performance of securities and that capital assets pricing model (CAPM) is very
significant to investors, it is strengthens the profitability necessary for
companies to achieve their corporate objective of wealth maximization.
OFFOR, S (2021). Effects Of Capital Budgeting On A Firm's Portfolio Management (A Study Of Selected Companies In Nigeria) . Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/effects-of-capital-budgeting-on-a-firms-portfolio-management-a-study-of-selected-companies-in-nigeria-7-2
STEPHNIE, OFFOR. "Effects Of Capital Budgeting On A Firm's Portfolio Management (A Study Of Selected Companies In Nigeria) " Mouau.afribary.org. Mouau.afribary.org, 13 Jul. 2021, https://repository.mouau.edu.ng/work/view/effects-of-capital-budgeting-on-a-firms-portfolio-management-a-study-of-selected-companies-in-nigeria-7-2. Accessed 01 Nov. 2024.
STEPHNIE, OFFOR. "Effects Of Capital Budgeting On A Firm's Portfolio Management (A Study Of Selected Companies In Nigeria) ". Mouau.afribary.org, Mouau.afribary.org, 13 Jul. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effects-of-capital-budgeting-on-a-firms-portfolio-management-a-study-of-selected-companies-in-nigeria-7-2 >.
STEPHNIE, OFFOR. "Effects Of Capital Budgeting On A Firm's Portfolio Management (A Study Of Selected Companies In Nigeria) " Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/effects-of-capital-budgeting-on-a-firms-portfolio-management-a-study-of-selected-companies-in-nigeria-7-2