| The purpose of this study was to determine the correlation between intangible factors and capital budgeting decisions of restaurants in Batangas City. The data gathered from 46 respondents were analyzed and interpreted using frequency and percentage, weighted mean and regression analysis. The study revealed that intangible factors like government regulation, employees’ safety and welfare, company’s goodwill, and environmental constraints were considered to a great extent by restaurants in making capital budgeting decisions. The study also found out that modernization of facilities or equipment, expansion of the business and production of future goods and services were the capital budgeting decisions encountered to a great extent by the restaurants. The aforementioned intangible factors have a significant effect to the capital budgeting decision in terms of company’s goodwill, employees’ safety and welfare, degree of risks and uncertainty, information technology, government regulation and environmental constraints. Capital budgeting decisions like production of future goods and services, investment in long term projects, modernization of facilities or equipment, purchase and maintenance of asset and expansion of business are affected by the said factors. In line with these, a set of guidelines were prepared to help the restaurant managers improve the consideration of intangible factors to the capital budgeting decision that will affect the development of long term strategic goals as well as the profitability of the business. These guidelines are to be checked, implemented and monitored by experts and related parties. |
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