A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1998

The research attempts to identify capital budgeting and financial management practices in Cambodia within a particular company with special reference to the framework developed by the author. The information used in this study was gathered tlu·ough an in-depth interview with the general manager and finance manager and other executive officers within that particular company and tlu·ough the government agencies in Cambodia. The study also relies on company publications, unpublished and published academic literature and business magazmes. The study identifies in detail how one particular company is doing the capital budgeting process and its financial management, giving more emphasis on company's financial policies and strategies, financial functions, working capital management, cash management, marketable securities management, accounts receivable management, inventory management, capital budgeting decisions, capital budgeting techniques, management of long term assets, dividend policy, internal financing, capital structure, long term financing and analysis of financial statements. The study also identifies the investment condition in Cambodia. The study selects The Shell Company of Cambodia Limited, S.A for in-depth case study to explain its financial management in great detail. In the case study, it presents the capital budgeting decision considering the example of expansion of a new project which was implemented recently. Finally study conclude giving recommendations to improve the effectiveness of capital budgeting process and financial management. This study provide a reference to corporate finance managers to improve the outcome of the capital investment decisions and financial performance in their companies.