Capital investments in the Swedish forest industry

• The purpose of this research is to gain understanding of how companies in the Swedish forest industry proceed in capital investment assessments regarding tangible investments. The research was conducted through a determination of which financial methods are used and which non-financial considerations (strategic, environmental, and social) are taken into account while assessing tangible investments. In order to enable a research of investment assessment in the Swedish forest industry, 10 companies have been studied with the use of qualitative (based on the interviews) method. The majority of the investment appraisal methods used in the Swedish forest companies have been observed in previous research, both domestically and internationally. The fact that the payback method is the most widely used method in the Swedish forest industry is in direct contrast to the application in the American forest industry, where discounted cash flows methods are most common. Net present value, internal rate of return, and sensitivity analysis are also used but not in all examined companies and not for all investments. Another distinctive finding is that the forest companies are happy to combine different calculation methods to increase the probability of succeeding in mapping a true picture of future investment financial consequences. The results of the study show that the investment assessment in the forest industry has several industry-specific features, which is expressed in the form of strategy, environmental, safety promotion becoming extra important for the forest companies, which stands out in relation to previous research.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Nyckelord

forest industry

capital investment appraisal

financial considerations

non-financial considerations

Ekonomistyrning

Ekonomistyrning

Publikations- och innehållstyp

ref (ämneskategori)

kon (ämneskategori)