Capital expenditures and firm performance: evidence from a cross‐sectional analysis of stock returns

Cordis, Adriana S.; Kirby, Chris

doi:10.1111/acfi.12193

Cited by 19 publications

(3 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…According to them, unexpected capital expenditure announcements provide value-relevant information beyond unexpected current earnings, after taking mediating variables into consideration. Other research showing that the disclosure of capital expenditure decisions impacts future performance include studies by Hirshleifer (1993), Chung et al (1998), Brailsford and Yeoh (2004), Kim (2001), Jiang et al (2006), Cordis andKirby (2017), andMoser et al (2019). Their studies suggest that disclosing capital expenditure decisions is associated with an increase in future performance.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Growth and Nongrowth Capital Investments and Future Performance*

Chu

Mbagwu

2023

Accounting Perspectives

View full text Add to dashboard Cite

Most studies on the impact of capital expenditure on future performance use the aggregate capital expenditure disclosed in the cash flow statement. In this study, however, we distinguish between growth capital investments (that increase production capacity) from nongrowth capital investments (that only maintain or reduce current capacity). For growth capital investments, we document a negative association with year‐ahead performance, which becomes positive in the subsequent year. For nongrowth capital investments, we observe a nonnegative association with year‐ahead performance. For nongrowth capital investments, we document a positive association, suggesting that the divestment is beneficial. That is, firms are likely disposing of nonproductive assets. Our results suggest that disclosing the nature of capital investments is important to better assess the future impact of a firm's investment decisions.

show abstract

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Growth and Nongrowth Capital Investments and Future Performance*

Chu

Mbagwu

2023

Accounting Perspectives

View full text Add to dashboard Cite

show abstract

“…Approaches to stock analysis are technical as well as statistical analysis (Q. Wang&Y. Zhu etal, 2017; A. S. Cordis & C. Kirby, 2017). These traditional methods play an active role in the development of stock analysis.…”

mentioning

confidence: 99%

An Empirical Study on Impact of Management Capabilities for the Multinational Company's Sustainable Competitive Advantage

Zong

Wang*

2022

Journal of Organizational and End User Computing

View full text Add to dashboard Cite

Based on the deep learning (DL) theory, the study takes the multinational corporation technology company A as the research target, and explores the impact of information technology (IT) management capabilities on the sustainable competitive advantage of the company. Firstly, the proposed method summarizes the connotation and characteristics of IT management capabilities, and analyzes the nature and functions of enterprise IT management capabilities. Secondly, the study expounds three different theories of sustainable competition theory. Then, it briefly elaborated the principles of Artificial Neural Network (ANN) algorithms and the classification and definition of DL algorithms. Finally, Long Short-Term Memory (LSTM) is selected as the training algorithm of the model. The stock price trend of technology company A is used as the basis for judging competitiveness, and the influence of IT management ability on the company’s sustainable competitiveness is quantitatively analyzed.

show abstract

“…Hal ini mengindikasikan bahwa penggunaan pembiayaan investasi bank syariah tidak secara langsung mampu berdampak positif terhadap pertumbuhan produksi UMKM. Temuan ini mengonfirmasi hasil penelitianCordis & Kirby (2016) yang membuktikan bahwa investasi berpengaruh negatif terhadap kinerja perusahaan. Temuan ini juga mengonfirmasi hasil penelitianKim et al (2020) tentang dampak belanja modal terhadap kinerja yang menyimpulkan bahwa terdapat hubungan negatif antara belanja modal dan kinerja penerimaan perusahaan.…”

unclassified

Pembiayaan Investasi Bank Syariah dan Pertumbuhan Produksi Usaha Kecil dan Menengah: Bukti Data Panel Indonesia Kawasan Barat

Amri

Fitri

Adnan

et al. 2022

JAM

View full text Add to dashboard Cite

This study aims to examine and analyze the effect of Islamic bank investment financing on the production growth of small and medium enterprises (SMEs). Using panel data from 8 provinces in western Indonesia from 2014.Q3 to 2019.Q3, the analytical model used is the cointegration test, vector error correction model, and Granger causality test. The study found a long-term and short-term relationship between the two variables. In the long term, investment financing will positively and significantly increase SMEs' production growth. Furthermore, in the short run, the relationship between the two variables is negative. Granger causality test results indicate a two-way causality between investment financing and production index growth. Production responses to changes in investment financing and vice versa, the investment financing is also a response to changes in SMEs' production growth.

show abstract

Capital expenditures and firm performance: evidence from a cross‐sectional analysis of stock returns

Cited by 19 publications

References 31 publications

Growth and Nongrowth Capital Investments and Future Performance*

Growth and Nongrowth Capital Investments and Future Performance*

An Empirical Study on Impact of Management Capabilities for the Multinational Company's Sustainable Competitive Advantage

Pembiayaan Investasi Bank Syariah dan Pertumbuhan Produksi Usaha Kecil dan Menengah: Bukti Data Panel Indonesia Kawasan Barat

Contact Info

Product

Resources

About