Preliminary communication
Determinants of investment decisions in a crisis: Perspective of Croatian small firms
Marko Perić
orcid.org/0000-0002-2828-4709
; Faculty of Tourism and Hospitality Management, Opatija, Croatia
Jelena Đurkin
orcid.org/0000-0002-1668-4967
; Faculty of Tourism and Hospitality Management, Opatija, Croatia
Abstract
The aim of the paper is to determine the investment activity of small firms in Croatia during the crisis year 2012 and further analyse the effect of selected factors on capital investment decisions. For this purpose, an on-line survey of small businesses was conducted. The research sample consisted of small firms in Primorsko-Goranska County that earned the highest revenue in 2011, because it was assumed they would have greater investment potential in 2012. Research results show that almost half of the firms invested in new fixed assets in 2012. Their investment decisions were primarily motivated by mere "survival" purpose, since the investment activities were mostly oriented toward the replacement of worn-out assets.
Keywords
investment; small enterprises; crisis; managers; Croatia
Hrčak ID:
150567
URI
Publication date:
21.12.2015.
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