Factors Affecting the Capital Allocation into Fixed Assets of Slovak Enterprises

Kalusová, Lenka; Badura, Peter

doi:10.14254/1800-5845/2022.18-1.14

Cited by 4 publications

(2 citation statements)

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“…Research conducted by Sajid et al (2016), Hartono and Wahyuni (2005), and Rashid and Karim (2018) uncovered that liquidity positively affected investment decisions. However, Kalusová and Badura (2022) found that liquidity negatively influenced investment determination.…”

Section: H2: Solvency Negatively Affects Fixed-asset Investment Decis...mentioning

confidence: 99%

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Fundamental Factors of Financial Ratios and Discretionary Accruals in Influencing the Companies’ Fixed-Asset Investment Decisions

Rosa

Mukhibad

2022

JAI

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Research aims: This study aims to empirically prove the influence of profitability, solvency, liquidity, activity, dividend policy, and discretionary accruals on fixed-asset investment decisions.Design/Methodology/Approach: The researchers used consumer goods companies listed on the Indonesia Stock Exchange (IDX) from 2013 to 2019. Using the purposive sampling method, this study resulted in 163 bank-year observations. The data were then analyzed utilizing a fixed-effect model.Research findings: The results showed that profitability, liquidity, activity, and discretionary accruals positively affected fixed-asset investment. Meanwhile, the dividend policy negatively affected fixed-asset investment. This study strengthens the pecking order theory. In addition, the research sample used internal funds as a funding source for investment in fixed assets.Theoretical contribution/Originality: The variable added in the study distinguishing it from previous researchers is the discretionary accrual variable. Discretionary accruals have been proven to impact resource allocation, one of which is investment decisions. The additional discretionary accruals variable is expected to strengthen the influence of the consumer goods companies' fundamental factors on investment decisions in fixed assets.Practitioner/Policy implication: Investment in fixed assets in the consumer goods companies uses internal funds because these funds are low risk and support the company's sustainability.Research limitation/Implication: This study used dividend policy as one of the independent variables, and companies that did not distribute dividends could not be sampled.

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Section: H2: Solvency Negatively Affects Fixed-asset Investment Decis...mentioning

confidence: 99%

“…Moreover, the researchers used macroeconomic variables (gross domestic product-GDP and inflation) as control variables. The use of GDP and inflation aligns with Kalusová and Badura (2022) and Choudhary (2016) that investment decisions could not be freed from the influence of macroeconomic conditions.…”

Section: Introductionmentioning

confidence: 96%

Fundamental Factors of Financial Ratios and Discretionary Accruals in Influencing the Companies’ Fixed-Asset Investment Decisions

Rosa

Mukhibad

2022

JAI

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Sectoral Differences in Fixed Asset Financing: Evidence from Turkish Manufacturing Sub-sectors

Yaman

2024

Eskişehir Osmangazi Üniversitesi İktisadi Ve İdari Bilimler Dergisi

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This paper aims to identify the differences in fixed asset financing across Turkish manufacturing sub-sectors using data from 123 firms traded on the Borsa Istanbul (BIST) during the period 2010-2022. A five-stage panel regression methodology is followed. Employing panel regression models separately built for each manufacturing sub-sector the study examines the impact of short-term borrowing decisions, long-term financing options, and financial performance on fixed asset investments. The findings reveal a significant dampening effect of short-term borrowing decisions on fixed asset investments across all manufacturing sub-sectors. Moreover, the study underscores significant variations in the effects of long-term financing options and financial performance on fixed asset investments across manufacturing sub-sectors. The findings emphasize that sectoral characteristics play an important role in fixed asset finance planning and that the principle of maturity matching is a determining approach in financing strategies.

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The Impact of Asset Structure on a Company’s Financial Results Stability

Zimny

2022

JoFFL

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The purpose of the article is to examine the impact of asset structure on the stability of financial results of companies. The article verifies two hypotheses: 1. high share of non-current assets in total assets results in high volatility of profitability over time. 2. high share of PPE (Property, Plant & Equipment) in total assets results in high volatility of profitability over time. The methodology of the study includes a literature review and empirical research based on correlation analysis. The research covered the aggregated data of Polish non-financial enterprises employing 10 persons or more keeping accounting ledgers, data for years 2009–2020 (first dataset) and annual financial data of 115 companies from 13 WSE industry sub-sectors for years 2009–2021 (second dataset). The results of the research. The analysis of the asset structure and the volatility of profitability in the research sample indicated industries with large and small values of these parameters. Then, the hypotheses were tested; the results for the second dataset showed that there is a positive and weak, but statistically significant (p value ≤ 0.005) correlation between non-current asset structure ratio and both, ROS and ROS adjusted ratios, and there is a weak, but negative correlation between PPE structure ratio and ROS and ROS adjusted ratios (with p value of 0.021 and 0.076, respectively). On this basis, hypothesis 1 was considered as verified positively, and hypothesis 2 was rejected. The discussion contains suppositions concerning the probable reasons of the discrepancy between the result for the hypotheses 1 and 2.

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Factors Affecting the Capital Allocation into Fixed Assets of Slovak Enterprises

Cited by 4 publications

References 0 publications

Fundamental Factors of Financial Ratios and Discretionary Accruals in Influencing the Companies’ Fixed-Asset Investment Decisions

Fundamental Factors of Financial Ratios and Discretionary Accruals in Influencing the Companies’ Fixed-Asset Investment Decisions

Sectoral Differences in Fixed Asset Financing: Evidence from Turkish Manufacturing Sub-sectors

The Impact of Asset Structure on a Company’s Financial Results Stability

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