Volume : V, Issue : VIII, August - 2016

A STUDY ON THE IMPACT OF CAPITAL EXPENDITURE ON WORKING CAPITAL MANAGEMENT

Dr . R. Kavitha, Dr. R. Shanmugam

Abstract :

 Corporations are looking for new ways to stimulate growth, improve financial performance and reduce risk in today‘s challenging economic climate. Funds tied up in working capital can be seen as hidden reserves that can be used to fund growth strategies, such as capital expansion. Cash flows locked in stock and receivables can be freed up and such cash flows could be invested in assets. The determination of capital expenditure is very important for firms triumph. Because the extent and amount of this expenditure shows the future status of a firm and the quality of decisions about these kinds of investment indicate firms‘ situation. The objective of this study is to investigate the impact of capital expenditure on working capital management. In order to analyze the relationship between working capital management and capital expenditure, net liquidity balance and working capital requirements are used. To analyze the impact of capital expenditure on working capital management, descriptive statistics, correlation analysis and regression analysis have been used

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Dr .R.Kavitha, Dr. R.Shanmugam A STUDY ON THE IMPACT OF CAPITAL EXPENDITURE ON WORKING CAPITAL MANAGEMENT International Journal of Scientific Research,Volume : 5 | Issue : 8 |August 2016

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