Impact of subjective judgment of decision makers on an investment decision
Investment decision making always bears a certain amount of risk and uncertainty. Therefore, we can say that the investment decision is the most difficult decision which a company owner or a manager has to make. During the process of investment decision making, every decision maker has to face the problems of choosing the right among several possible alternatives. The goal is to choose the alternative which is most likely to realise the company's development and investment goals. The decision maker may approach this problem in several different ways. Investment decision making is among the final steps of preparatory operations of an investment process. Before making this decision, it is necessary to follow certain procedures in order to successfully conduct the required investment studies. After the investment decision has been made, we can initiate the realisation process of a given investment. This paper uses 20 different investment projects which were analysed through 5 methods of investment efficiency evaluation that are mostly used in countries covered by the research. Additionally, a research which focuses on the ways in which companies from Bosnia and Herzegovina, Croatia, Serbia and Montenegro approach the investment decision making process was conducted.