Abstract
The financial management textbooks introduce issues related to the financial management of fixed assets in a disjointed fashion rather than a comprehensive discussion in a single chapter like the working capital management. Students, analysts, and managers may not readily comprehend the linkages among these issues. In this study, we discuss a range of fixed asset related issues and explain their relationships with each other and how their impact on the accounting, financial, and economic performance measures. Finally, we assess the interrelationships between the fixed assets and financial mix. We encourage researchers to investigate and develop financial models of fixed asset management, which will link these variety of issues, and then support it with examples.
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