Effect Of Capital Expenditure Research Articles

Dividend policy and residual dividend theory: evidence from Indonesia

PurposeUsing the residual dividend theory, this study examines the impact of capital expenditures and working capital on the dividend policies of publicly listed companies in Indonesia.Design/methodology/approachUsing data on public companies (other than those in the financial sector) listed on the Indonesia Stock Exchange from 2011 to 2020, this study collected 870 observations (firm-years). This study employs a regression analysis technique using the STATA application program. The main variables in this study are capital expenditure and working capital, and the control variables are sales growth, firm size, leverage, profitability, liquidity and dummy variables for state-owned enterprises. The dependent variable of dividend policy is proxied by the dividend payout ratio.FindingsThis study’s results support the residual dividend theory’s hypothesis, in which capital expenditure negatively affects a company’s dividend policy. This study also analyzes this effect on companies that pay cash dividends at quantile positions of 25, 30, 50 and 60. The results show that the effect of capital expenditure on cash dividend payments is more pronounced in the case of companies whose cash dividends are in the 50th quantile. This result holds across different specification and endogeneity tests.Originality/valueThis study analyzes the residual dividend theory in Indonesian companies, focusing on localized factors and investment priorities. It challenges traditional Western dividend policies and provides empirical data that enhances the theory’s robustness. The findings have practical implications for investors, policymakers and corporate decision-makers in the Indonesian market.

The Effect of Capital Expenditure on Regional Financial Performance With Local Original Income as an Intervening Variable in Districts and Cities in NTT Province in 2017-2021

The research aims to analyze the influence of capital expenditure for local government financial performance through local government revenue as intervening variables. The sampling technique in this study is to use the purposive sampling method. The object of this research is all districts and cities in NTT, with a sample of 22 districts and cities. The data used is a type of secondary data, which was obtained from the realization of the 2017-2021 district and city revenue and expenditure budget (APBD) in NTT. The results of this study indicate that capital expenditures have an influence on local government revenue, and local government revenue has an influence on local government financial performance. Apart from that capital expenditures have a local government financial performance, with all of them having a positive correlation. The local government revenue is able to mediate the relationship between capital expenditures on local government financial performance.

The Effect of Capital Expenditure, Balancing Funds, and Special Financial Assistance (BKK) on The Welfare of the People of Central Java Post Covid-19 (2020-2022)

This study examines the impact of capital expenditure, balancing funds, and special financial assistance (BKK) on community welfare in 35 districts/cities of Central Java Province from 2020-2022 with a total of 105 data, with multiple linear regression analysis techniques and assisted by the STATAMP 17 calculation tool. The study employs a quantitative model using secondary data and multiple linear regression analysis approaches using the HDI measurement indicator. The findings indicate that although BKK has no beneficial impact on human wellbeing, capital spending and balancing money do. The study aims to provide a deeper understanding of these factors' influence on community welfare, helping policymakers develop more effective and sustainable budget strategies to improve community welfare through efficient allocation of funds.

Effect of Capital Expenditure on Idiosyncratic Volatility of Stock Returns at the NSE in Kenya

Effect of Capital Expenditure on Idiosyncratic Volatility of Stock Returns at the NSE in Kenya

Pengaruh Penanaman Modal Asing, Penanaman Modal dalam Negeri, dan Belanja Modal terhadap Industri Pengolahan dan Produk Domestik Regional Bruto di Provinsi Sulawesi Selatan

This research was conducted with the aim of understanding 1) the effect of foreign investment on the processing industry in South Sulawesi Province; 2) the effect of domestic investment on the processing industry in South Sulawesi Province; 3) the effect of capital expenditure on the processing industry in South Sulawesi Province; 4) the effect of foreign investment on the gross domestic product in South Sulawesi Province; 5) the effect of domestic investment on the gross regional domestic product in South Sulawesi Province; 6) the effect of capital expenditure on the gross regional domestic product in South Sulawesi Province. This study uses secondary time series data from 2006 to 2021. The data is analyzed using the Eviews 10 application using the Error Correction Model to analyze short-term and long-term effects. The results of the study show that in the long run: 1) FDI has a positive and significant effect on the processing industry in South Sulawesi Province; 2) Domestic Investment has a positive and significant effect on the processing industry in South Sulawesi Province; 3) positive and significant capital expenditure for the processing industry in South Sulawesi Province; 4) FDI is positive and not significant to GRDP in South Sulawesi Province; 5) Domestic Investment has a positive and significant effect on GRDP in South Sulawesi Province; 6) capital expenditure has a positive and significant effect on GRDP in South Sulawesi Province. That means that the role of the government, private sector, and society is needed to increase income goods from side production and economic spending. Expected that through strengthening investment and macroeconomic stability as well as determining economic activities that can increase the influence of the processing industry and increase GRDP

THE EFFECT OF CAPITAL EXPENDITURE ON DOMESTIC INVESTMENT AND FOREIGN INVESTMENT WITH INFLATION AS A MODERTTING VARIABLE

This research aimed to know how the effect of capital expenditure and inflation variable to the Domestic and Foreign Investment in Indonesia especially Provinces in Java Island in 2016 to 2020. This research used the panel data regression method with time-series data from the Central Bureau of Statistics (BPS) and the Directorate General of Fiscal Balance’s portal data. The results of this study are the inflation variable partially significant effect on Foreign Investment in provinces in Java Island. On the contrary, the capital expenditure variable does not have a significant effect both on domestic and foreign investment, while the inflation variable strengthens the relationship between capital expenditures and domestic investment. Keywords : Capital Expenditure, Domestic Investment, Foreign Investment, Inflation

Effect of Capital Expenditure and Return on Assets on Capital Gains of Consumer Non-Cyclicals Companies Listed on the Indonesia Stock E

<em>This study aims to determine the influance of Capital Expenditure and Return on Assets on the Capital Gain of non-cyclical consumer sector companies listed on the Indonesia Stock Exchange for the 2015-2019 period. This study uses a quantitative approach, the population is a non-cyclical consumer sector listed in Indonesia Stock Exchange before 2015, as many as 59 company. The sampling was carry out purposively and 35 companies were obtained as samples. Data analysis techniques include descriptive statistical analysis, classical assumption test, multiple linear analysis, hypothesis testing (t test), and analysis of the coefficient of determination. Data processing was carried out using SPSS version 25. The results of this study indicate that the capital expenditure variable has no effect on capital gains. Meanwhile, the return on assets variable has an effect on capital gains</em>

The Effect of Capital Expenditure and Operational Expenditure on Investment Decision

The purpose of this research is determines the extent to which capital expenditure decisions are made by listed agricultural sector companies. Companies in Indonesia are related to the value of the company in the long run.The number of companies listed on the IDX during this period was 26, and the sample size used was 10. With the help of regression analysis, the findings reveal that capital expenditure and operational expenditure have significant relationship with investment decisions. it can be concluded that the sector companies listed on the Indonesia Stock Exchange for the period 3 years 2019-2021 capital expenditure variables have a significant positive effect on investment decisions, then operational variables have an insignificant negative effect on investment decisions It is recommended that the management of agricultural sector enterprises should ensure:holistic use of all techniques, exploring risks, real options analysis and growth and portfolio management techniques involving capital assets, in valuing capital investments before taking decision. it can be concluded that the sector companies listed on the Indonesia Stock Exchange for the period 3 years 2019-2021 capital expenditure variables have a significant positive effect on investment decisions, then operational variables have an insignificant negative effect on investment decisions.

The Influence of Capital Structure and Management Quality on Firm Value With Capital Expenditure as Moderating Variable in the Primary Consumer Goods Sector on the Indonesia Stock Exchange

The purpose of this study is to determine the effect of capital structure and management quality on firm value and the effect of capital expenditure as a moderating variable on the effect of capital structure and management quality on firm value. The population in this study is the Primary Consumer Goods Sector Companies on the Indonesia Stock Exchange (IDX) from 2016 to 2020, of which there are 92 companies. The sampling technique is purposive sampling, so the research sample is 59 companies. The analysis stages of this study include descriptive statistical analysis, classical assumption testing, multiple linear analysis, correlation coefficient analysis and determination, hypothesis testing, and moderating regression analysis. The results of the study show that capital structure and management quality have a positive effect on firm value, and capital expenditure has a moderating effect that weakens the effect of capital structure on firm value, while capital expenditure has a moderating effect that strengthens the influence of management quality on firm value.

Determinants of Indonesia Domestic Investment and Foreign Investment

This research aimed to know how the effect of capital expenditure and inflation variable the Domestic and Foreign Investment in Indonesia especially Provinces on Java Island from 2016 to 2020. This research used the panel data regression method with time‐series data from the Central Bureau of Statistics (BPS) and the Directorate General of Fiscal Balance's portal data. The results of this study are the inflation variable partially significant effect on Foreign Investment in provinces on Java Island. On the contrary, the capital expenditure variable does not have a significant effect both on domestic and foreign investment, while the inflation variable strengthens the relationship between capital expenditures and domestic investment.

Capital Expenditure and Investment on Economic Growth in West Papua Province 2015-2019

This study was conducted to know the effect of capital expenditure and investment on economic growth in West Papua in 2015-2019. First, sampling was carried out using the saturated sampling technique with the number of samples obtained in 13 districts/cities. Panel data with Least Square Dummy Variable (SLDV) model estimation is used as an analysis method and Stata 16 functions as a data processing program. The research then found that the capital expenditure variable had a negative and insignificant effect on economic growth. Then it was found that the investment variable has a positive and significant impact on economic growth. Compared with the results of studies using only independent variables, the use of control variables (population and average length of schooling) will present the most significant coefficient of determination at the time of full regression. These results then indicate that the control variable has a strong influence on economic growth.

Pengaruh belanja modal, investasi dan upah minimum terhadap pertumbuhan ekonomi melalui kesempatan kerja di Kabupaten Batanghari

This study aims to: 1) determine and analyze the effect of capital expenditure, investment, and minimum wage on employment opportunities in Batanghari Regency and 2) determine and analyze the effect of capital expenditure, investment, and minimum wage on economic growth through employment opportunities in Batanghari Regency. Based on the results of multiple linear regression that partially investment variables have a significant effect on employment opportunities. In contrast, capital expenditures and minimum wages have no significant effect on employment opportunities in Batanghari Regency. Based on the results of multiple linear regression that partially, the minimum wage and employment opportunities have a substantial effect on economic growth, while capital expenditure and investment variables have no significant effect on economic growth in Batanghari Regency. Keywords: Capital expenditure, Investment, Minimum wage, Employment opportunity, Economic growth.

Pengaruh belanja modal dan penanaman modal dalam negeri terhadap pertumbuhan ekonomi di Kabupaten/Kota Provinsi Jambi

This study aims to: 1) analyze the development of Capital Expenditure, PMDN and Regency and City Economic Growth in Jambi Province; 2) To find out and analyze the effect of Capital Expenditures and Domestic Investment on the Regency and City Economic Growth in Jambi Province. The research analysis tool uses panel data regression analysis tools. Based on the regression test results, the data of the simultaneous data shows that capital expenditure and PMDN have a significant effect on the economic growth of regencies/cities in Jambi Province. While partially leading the two independent variables, only PMDN affects economic growth in Jambi Province districts/cities, while capital expenditure does not affect economic growth in Jambi Province districts/cities during 2011-2017. Keywords: Capital expenditure, PMDN, Economic growth

A novel measure of corporate carbon emission disclosure, the effect of capital expenditures and corporate governance

The UK's 2050 net-zero emission target is one of the most ambitious goals in the world. Organisations should play a vital role by communicating a sufficient level of carbon emission information with the stakeholders. Motivated by the necessity of measuring the level of carbon disclosure, this paper provides a unique carbon emission disclosure measurement based on a sample of UK firms from 2013 to 2019. We apply different methods to assess the validity and reliability of our developed measurement. The results suggest that our measurement captures the actual CO2 emission, including scope 1, scope 2, and also captures the environmental, social and governance (ESG) score. Additionally, we explore the association between capital expenditure, corporate governance and the level of carbon emission disclosure. Further, the results show a positive relationship between capital expenditure and carbon emission disclosure. Also, there is a significant positive relationship between internal governance and carbon emission disclosure. Moreover, the analysis suggests that internal governance strengthen the relationship between capital expenditure and carbon emission disclosure. We also use quantile regression, and the findings show that capital expenditure and internal governance have a positive impact on carbon emission disclosure under all quantiles. Our data suggest that capital expenditure declines within the UK by around 53% over the last six years. Following the reduction in capital expenditure, the results demonstrate 39% decline in the CO2 emission level. The results also indicate that for every $1 million capital expenditure, approximately 2.75 Metric tons of carbon dioxide (MtCO2) emissions increase. Business investment is around 70% of the UK's total investment. Therefore, the reduction in capital expenditure is one of the primary reasons that might explain the decrease in the UK's overall CO2 emission level. The unique findings of this paper are relevant to the government, management and standard-setters.

Analisis dampak belanja modal dan tingkat pengangguran terhadap tingkat kemiskinan di Kabupaten Tebo

This study aims to determine and analyze: 1). Changes that occur in capital expenditure, unemployment, and the number of poor people in Tebo Regency during 2004-2018, 2). Effect of capital expenditure and unemployment rates on poverty levels in Tebo Regency during 2004-2018. The data analysis method used in this study uses the formula of development and multiple linear regression. Based on the results of research during 2004- 2018 in Tebo Regency, the average capital expenditure increases 20.99 percent every year, the number of unemployed people has increased 28.57 percent every year and the average number of poor people has decreased 0, 42 percent every year. Capital expenditure and unemployment rate influence reducing the level of poverty in Tebo Regency during 2004-2018 with a regression coefficient value of capital expenditure and the unemployment rate which has a negative regression coefficient.
 Keywords: Capital expenditure, Poverty rate, Unemployment rate

Analysis the Effect of Capital Expenditure on Financial Performance Mediated by Local Revenue in North Maluku Province

This study aims to examine the effect of capital expenditure on local financial performance mediated by local revenue at Districts and Cities in North Maluku Province. The population is all districts and cities in North Maluku Province. Total 10 samples are selected by saturated method. The secondary data is collected from 2015-2019 Audited Budget Realization Report in Local Government Financial Statements. The research results show that capital expenditure has a significant and positive effect on local financial performance, local revenue has a significant and positive effect on financial performance and capital expenditure has a significant and positive effect on financial performance moderated by local revenue. Keywords: Capital Expenditures, Financial Performance, Local revenue DOI: 10.7176/RJFA/12-8-08 Publication date: April 30 th 2021

The Effect of Capital Expenditures and General Allocation Funds on Local Financial Independence Through Local Revenue as an Intervening Variable in Districts and Cities in North Maluku Province

This study aims to examine the effect of capital expenditure and general allocation funds on local financial independence, either directly or mediated by local revenue. The population is the APBD Realization Report from website of Director General of Local Government Matching Grant. The samples are the document of APBD Realization Report for Regency / City Governments in North Maluku Province for 2015-2019. Data are collected from 2015-2019 District and City Government APBD Realization Reports in North Maluku Province, BPK RI Audit Results Reports and website http://www.djpk.kemenkeu.go.id/ . The collected data is analyzed by multiple regression analysis and path analysis. The analysis found four findings. First, the General Allocation Fund partially has no effect on Local Financial Independence. Second, Capital expenditure partially does not affect on local financial independence. Third, the General Allocation Fund indirectly has a significant effect on Local Financial Independence through Local Revenue. Forth, Capital expenditure indirectly has a significant effect on Local Financial Independence through Local Revenue. DOI: 10.7176/DCS/11-4-03 Publication date: April 30 th 2021

The Role of Capital Expenditures, Human Development Index and Access to Electricity on Economic Growth in Java and Non-Java Islands

This study aims to determine whether there is a positive effect of capital expenditure, HDI and access to electricity on economic growth and is there a difference between economic growth in Java (in fact as a development area) and the Non-Java region. The data source used is secondary data in the form of the 2015 Ministry of Finance Report, as well as the publication of the Central Statistics Agency. The analysis used is the Ordinary Least Square (OLS) analysis where this test was carried out in 33 provinces in Indonesia (North Kalimantan was not used in the observation because it was a newly formed province). From the test results, it is found that: Capital Expenditure, HDI has a positive and significant effect on Economic Growth. Meanwhile, Electricity Accessibility has no influence on growth. This condition means that the economic growth in the Java Region is indeed higher than the economic growth outside Java.

Pengaruh Pendapatan Asli Daerah, Belanja Modal dan Indeks Pembangunan Manusia

This study aims to determine empirically the effect of local revenue on the increase in the human development index in West Papua province and to empirically determine the effect of capital expenditure on the increase in the human development index in West Papua province. The data analysis technique used is multiple linear regression analysis. Based on the results of the analysis, it is known that the Original Regional Income has a positive and significant effect on the increase in the District / City Human Development Index in West Papua Province. This shows that an increase in Regional Original Income (PAD) will tend to increase the Human Development Index. Capital expenditure has a positive and significant effect on increasing the District / City Human Development Index in West Papua Province.
 Keywords: PAD; Capital Expenditures; Human Development Index.

Pengaruh Belanja Modal, Pendapatan Asli Daerah Dan Dana Alokasi Umum Terhadap Kinerja Keuangan Dengan Pengawasan Sebagai Variabel Moderating Di Kabupaten/Kota Provinsi Riau Tahun 2014 - 2018

This study aims to see and the effect of capital expenditure, local revenue and general allocation funds on financial performance with supervision as a moderating variable in regencies / cities of Riau Province in 2014-2018. The population in this study is the regional financial performance in Riau Province as much as 12 (twelve) Districts / Cities during 2014 - 2018. The sampling method used the census method or saturated samples, namely the entire population became the research sample so that the total sample used in this study was 60. The results in this study are that capital expenditures, local revenue and general allocation funds have a significant positive effect on regional financial performance. Supervision has a significant positive effect on financial performance. Supervision can moderate between capital expenditures, local revenue and general allocation funds and regional financial performance.