A capital allocation decision rule for knowledge-intensive organizations

J. Juneja, A. Amar
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Abstract

We formulate a mathematical programming problem for allocating capital budget between the organizational and physical capitals of the firm and solve it to obtain an analytically tractable and easy to implement decision rule for the optimal allocation of the capital budget. The model we develop depicts interconnections of these capitals and their constituent variables in the context of the firm's valuation through the growth of its operating income. Finally, we illustrate our findings through the optimal capital allocations by the largest software companies using data from their financial statements over the period 1991– 2015. We find that managers of software companies that allocate more of their capital budget to organizational capital on a steady basis enjoy superior financial performance.
知识密集型组织的资本配置决策规则
本文提出了一个企业组织资本与实物资本之间资本预算分配的数学规划问题,并对其进行求解,得到了一个易于分析、易于实现的资本预算最优分配决策规则。我们开发的模型通过其营业收入的增长来描述公司估值背景下这些资本及其构成变量之间的相互联系。最后,我们利用1991年至2015年期间的财务报表数据,通过最大的软件公司的最优资本配置来说明我们的发现。我们发现,在稳定的基础上将更多的资本预算分配给组织资本的软件公司的经理享有优越的财务绩效。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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