Managerial Judgement and Strategic Investment Decisions


  • Elaine Harris, Professor and Head of Department of Accounting and Finance and Head of Leicester Business School's Graduate Centre at De Montfort University
  • Clive Emmanuel, Department of Accounting and Finance, University of Glasgow
  • Samuel Komakech, Lecturer in Accounting and Finance at De Montfort University

This book presents the findings from a cross-sectional survey funded by CIMA. The project aimed to survey senior management accountants working across a range of organisations and industries with a unique focus on the behavioural side of decision making, the use of managerial judgement. Previous capital budgeting surveys have tended to focus on the quantitative evaluation tools and techniques used for project appraisal. This study was broader in that it asked about every stage of the strategic investment decision (SID) process, from initiation to post implementation review, and how different managers were involved at different stages of the process. The focus is on how decision judgements are reached.
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Academics and students in the field of Managerial Judgement and SIDS.Practitioners in the field, especially those being introduced to the subject area for the first time. Trainee accountants and recently qualified accountants (this report was recommended as a mandatory reading to these two groups by one of the reviewers).


Book information

  • Published: August 2009
  • ISBN: 978-1-85617-823-5

Table of Contents

1 - Strategic Investment Decisions (SIDs): Introduction; explanation of context; the stages of SID process; the types of SID; multiple manager participation in the process; the role of managerial judgement in SIDs; 2 - Managerial Judgement: Managers’ strategic cognition and psychological concepts; Heuristics; Framing of propositions; Collective decision making and socio-political process; Consensus; 3 - Survey Design: The analytic survey questionnaire; The sample and distribution of the questionnaire; Respondents; Data analysis; 4 - Survey Analysis; Respondent profiles; Types of SID; Stages in the SID process; Nature of the SID process; Managerial involvement; Psychological and group processes; 5 - Summary of Findings and Implications: Summary of main findings; Implications for management accounting literature; Implications for management accountants; Implications for management of organizations; Implications for stakeholders in organizations; Appendix 1 Questionnaire; Appendix 2 Summary of survey responses; Appendix 3 Further statistical tables; Appendix 4 Case Studies