Capital allocation decision

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Capital allocation decision

Allocation of invested funds between risk-free assets and the risky portfolio.

Capital Allocation Decision

A company's or manager's decision on where to place recourses such that they produce the maximum possible return for shareholders. Capital allocation decisions represent attempts to produce profit in the most efficient way possible. They can be quite difficult to make, as the options for capital allocation are virtually limitless. Capital allocation decisions may involve making more of the same product, investing in research to invent new products, paying out more in dividends, or making any number of different decisions.
References in periodicals archive ?
All major operating, investment, and capital allocation decisions are made by Sardar Biglari, Founder, chairman and chief executive officer, on behalf of Biglari Holdings and its subsidiaries.
Biglari Holdings to Acquire Pacific Specialty Insurance, Affiliate for USD 299.5m
The models provide a framework for ratemaking decisions, capital allocation decisions, lines of business to target or avoid, even how much reinsurance a company should purchase.
Model behavior
In the next 12 months, companies in the region will have interesting capital allocation decisions to make as liquidity remains tight and value pockets remain unclear.
GCC dominates third quarter M&A activity in the MENA region
Gandier said in the next 12 months, companies in the region will have interesting capital allocation decisions to make as liquidity remains tight and value pockets remain unclear.
Mena C-suite pauses on M&A in Q3 on 'macro uncertainties'
Hill will chair Barrick's Investment Committee, and will ensure a high degree of consistency and rigor is applied to all capital allocation decisions at the companywhether at existing operations, development projects, exploration (both near-mine and greenfields), or potential acquisitions and divestments.
Canada : Barrick Announces Appointment of Mark Hill as Chief Investment Officer
Cottonwood's impressive growth in value and improvement in portfolio quality over that period is a result of disciplined investing standards, strategic capital allocation decisions and capital investments through contributions by property owners, broker-dealer networks and institutional partners totaling over $475 million.
Private company profiles 2016
This study uses a cross-country setting to examine the relationship between financial reporting quality and capital allocation decisions.
The relationship between capital allocation efficiency and financial reporting quality: international evidence
ACTION POINT: Review your capital allocation decisions of the past year.
LEADERSHIP and MANAGEMENT
The recent launch of the consultation draft of the Integrated Reporting Framework is a first step to transforming transparency in corporate reporting, so investment and capital allocation decisions can be made, based not just on financial capital efficiency but on natural and social capital returns as well.
The real global capital market
The company plans to repurchase shares systematically and opportunistically subject to available cash, market conditions and other ongoing capital allocation decisions.
-Moody's adds USD 1bn to buyback authorisation
Managers in a variety of disciplines - finance, risk, audit - must deal with the risk associated with their capital allocation decisions.
Getting a bigger bang from the analytics buck
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