The relationship between cash flow and capital expenditure in the sugar industry of Pakistan

Qandhari, Syed Gouhar Ali; Khan, Malik Muhammad Sheheryar; Rizvi, Wafa

doi:10.1353/jda.2016.0131

Cited by 5 publications

(5 citation statements)

References 12 publications

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“…Therefore, it is perfectly reasonable to have a negative relationship between working capital and fixed assets expenditure. Although this conclusion is consistent with Qandhari et al (2016) discussed a positive linkage between these two variables. Hypothesis H5 is not accepted.…”

Section: Discussionsupporting

confidence: 85%

“…Theoretically, the determinants of capital expenditure are interested by various Vietnamese and foreign researchers. Typical studies on determinants of capital expenditures include Nair (1979), Berndt et al (1980), Fazzari and Athey (1987), Fazzari et al (1988), Gaver (1992), Kuh & Meyer (1957), Qandhari et al (2016), Becker and Sivadasan (2010), Dalbor and Jiang (2013), Ninh (2007), andTrang &Quyen (2013). The studies diverse in terms of determinants, research context and research period.…”

Section: Introductionmentioning

confidence: 99%

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Determinants of firm’s capital expenditure: Empirical evidence from Vietnam

Nguyen¹,

Nguyen²

2020

10.5267/j.msl

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This research was conducted to investigate the factors affecting the company's capital expenditure. Data were collected from the firms listed on Ho Chi Minh Stock Exchange (HOSE) over the period of nine years from 2010 to 2018, including the sample of 192 non-financial listed companies. Three statistical approaches were employed to address econometrics issues and to improve the accuracy of the regression coefficients: Random Effects Model (REM), Fixed Effects Model (FEM) and Generalized Method of Moments (GMM). The results show that free cash flows and firm size influenced positively on capital expenditure. By contrast, other factors such as dividend, interest expenses, depreciation and working capital had negative effects on capital expenditure. Based on the research results, some key intuitive recommendations were proposed for managers and investors in order to help them in making decisions.

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Section: Discussionsupporting

confidence: 85%

Section: Introductionmentioning

confidence: 99%

Determinants of firm’s capital expenditure: Empirical evidence from Vietnam

Nguyen¹,

Nguyen²

2020

10.5267/j.msl

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“…In the broader scope, investment activity also means obtaining and disposing of non-cash assets Wahlen et al (2011). In addition, the bank may set aside funds from free cash flow (Qandhari et al 2016). The bank made such investments to generate additional revenue, maintain good relationships with the parties, control the investee's business, or expand the product.…”

Section: Cash Flow From Investing Activitiesmentioning

confidence: 99%

Financing Moderation in the Relationship of Investing Activities and the Bank Capital Adequacy Ratio

Samryn¹

2023

IJBM

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This study compares the influence of Cash Flow from Financing Activities (CFF) moderation on the relationship between Cash Flow from Investing Activities (CFI) and Capital Adequacy Ratio (CAR) of the big-five commercial banks in Indonesia and Malaysia. The big-five selections consider the banks' leadership in the countries during the first five years post-crisis 2008. The study uses E-view software to analyze the 2009 to 2013 data, including the stages of the data validity test, simple regression, and multiple regression. Two discrete hierarchical Sobel tests were applied to measure the CFF moderation impact on the CFI and CAR relationship applicable to each group of banks. Finally, the study distinguished the discrete Sobel test outputs using a Chow statistic. The Sobel test shows that in both Indonesian and Malaysian banks, the CFF moderation has positive but insignificant effects on the CFI and CAR relationship. Consistent with the conclusions, the Chow statistic shows a significant difference in the CFF moderation effect on the CFI and CAR relationship. These conclusions bring implications to the interest parties to align their concerns with the two countries' contradictive CFI and CFF funding patterns in shaping the CAR.

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“…The results of study, therefore, showed a positive significant impact of capital expenditure on firm's profitability. Qandhari, Khan, and Rizvi (2016) conducted a study in the sugarcane sector of Pakistan and found that there exists a positive and significant relationship between capital expenditure and profitability. They argued that, in Pakistan, sugar industry being 2 nd largest agricultural based industry, needs a lot of capital investments in order to generate profit and be competitive in the export market.…”

Section: Empirical Reviewmentioning

confidence: 99%

Investigating the Impact of Capital Expenditures on Firms’ Profitability of Textile Sector of Pakistan

Abbas

Ahmad

Mehmood

et al. 2023

Pak. J. Humanit. Soc. Sci

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The research objective was to determine the impact of capital expenditure on textile firm’s profitability in Pakistan. For this purpose, study utilizes panel data from the annual reports of firms operating in the textile sector of Pakistan. Quantitative research approach and longitudinal research design was applied. The panel data results indicates that the impact of capital expenditures on firm profitability is significant and positive. The findings suggest that increasing capital expenditures can lead to higher profitability for textile firms in Pakistan. This implies that textile firms in Pakistan should prioritize investments in capital expenditures in order to improve their financial performance. The findings provided by this research could be valuable for textile firms in Pakistan as they seek to make strategic investment decisions. Additionally, policymakers and investors in the textile sector can use the results of this study to inform their decision-making processes and optimize investment strategies. The study's findings could also contribute to a better understanding of the relationship between capital expenditures and firm profitability in the textile sector of Pakistan. The research could also helped to the researchers to conduct their research in future.

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The relationship between cash flow and capital expenditure in the sugar industry of Pakistan

Cited by 5 publications

References 12 publications

Determinants of firm’s capital expenditure: Empirical evidence from Vietnam

Determinants of firm’s capital expenditure: Empirical evidence from Vietnam

Financing Moderation in the Relationship of Investing Activities and the Bank Capital Adequacy Ratio

Investigating the Impact of Capital Expenditures on Firms’ Profitability of Textile Sector of Pakistan

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