Capital Budgeting in a Low Interest Environment - How Swiss Companies Generate and Use Their Cash Flows

Abstract

Since the financial crisis in 2008, Swiss companies face a historical low interest environment. This unique situation gave reason for the following research questions: „ How do Swiss companies generate and use their cash flows in a low interest environment? “ In order to answer this questions two hypotheses were formed: 1) In a low interest environment, companies are increasing their investments. 2) If investments are not increased, the distribution of generated cash flows to creditors and shareholders will rise.