Impact Of Capital Expenditure Research Articles

Pengaruh Pendapatan Asli Daerah, Dana Alokasi Umum, Dana Bagi Hasil dan Tingkat Inflasi terhadap Belanja Modal di Provinsi Bengkulu Tahun 2018-2022

The purpose of this study is to determine how the impact of capital expenditure in Bengkulu Province from 2018 to 2022 is related to local original income (PAD), general allocation funds (DAU), profit-sharing funds (DBH), and inflation. The study population consisted of local original income, general allocation funds, profit-sharing funds, inflation rates, and capital expenditures. Ten cities and regencies in Bengkulu Province. This study uses secondary data on the implementation of the 2018–2022 Bengkulu Provincial APBD budget obtained from the Directorate General of Financial Balance. WarpPLS software version 7.0 will be used as a data analysis tool to review research data. The conclusion of this study shows that although the general allocation fund does not have a significant effect and the inflation rate has a significant negative influence on capital expenditure, local original income, and profit-sharing funds have a significant positive influence.

Impact of Capital Expenditure on Economic Growth: A Study of Nepal

In countries like Nepal, government spending objectives range from promoting market-driven stability to intervening for alleviating suffering and preventing business loss, reflecting the tension between laissez-faire and interventionist approaches in economic development. The study explores government expenditure's role in Nepal's economic growth using econometric models like the Engle-Granger Cointegration Test and Error Correction Model. Recurrent, capital, and total expenditures are compared with GDP as indicators of Nepal's economic growth, showing significant positive relationships. The Unit Root Test indicates all variables becoming stationary after differencing once. The Johansen Test reveals 2 co-integrating equations, indicating enduring relationships among variables. Co-integrating Relation analysis demonstrates RE, CE, TE, and C's significant impact on GDP, with a low Durbin-Watson statistic suggesting possible autocorrelation. The Error Correction Term analysis highlights the significance of D(RE), D(CE), D(TE), and C, while ECT(-1) is significant at a 10% level. While the model explains a significant portion of GDP variation, additional factors must be considered for policymaking.

Growth and Nongrowth Capital Investments and Future Performance*

ABSTRACTMost studies on the impact of capital expenditure on future performance use the aggregate capital expenditure disclosed in the cash flow statement. In this study, however, we distinguish between growth capital investments (that increase production capacity) from nongrowth capital investments (that only maintain or reduce current capacity). For growth capital investments, we document a negative association with year‐ahead performance, which becomes positive in the subsequent year. For nongrowth capital investments, we observe a non‐negative association with year‐ahead performance. For nongrowth capital investments, we document a positive association, suggesting that the divestment is beneficial. That is, firms are likely disposing of nonproductive assets. Our results suggest that disclosing the nature of capital investments is important to better assess the future impact of a firm's investment decisions.

The Impact of Capital Expenditure on Working Capital Management: Evidence from the Listed Manufacturing Companies in the Colombo Stock Exchange (CSE)

The study investigated the effect of capital expenditure (CE) on working capital management (WCM) using quarterly financial data of 30 selected listed manufacturing companies in Sri Lanka during the period of 2014 to 2018. The Net liquidity balance (NLB), working capital requirement (WCR) and cash conversion cycle (CCC) were utilized as proxies for WCM and pooled least squares regression analysis model was used analyzing the relationship between CE and WCM. Based on three different models, six different hypotheses were tested. The effect of CE financial expenditure and operating expenditure on NLB were investigated as the first model and secondly the effect on WCR and CCC was investigated. The significant negative relationship has been identified between NLB and CE, which implies that these firms do not strive increasing the balance of most liquid assets when facing with CE since firms use debt or bank overdraft as firms don’t have enough internally generated funds to be used in long term fixed investments. Further, the insignificant relationship between operating working capital and CE was found. Based on the investigation, managerial implications of the manufacturing companies have to consider the trend of CE in managing WC and establish trade between CE and WCM in order to enhance long term profitability through fixed asset investment while ensuring smooth functioning of company’s liquidity activities without incurring any liquidity risk.

A Comparative Analysis Of Capital Expenditure On Infrastructure And Economic Growth In Nigeria And South Africa

Nigeria and South Africa are two dominating economies in Africa but defer in terms of infrastructural development. The question of whether this infrastructural difference culminate to the difference in economic growth in the two economies is central to this study. This paper therefore, examined the impact of capital expenditure on infrastructure and economic growth both in Nigeria and South Africa using time series data from 1980 to 2016.
 Autoregressive Distributed Lag (ARDL) Bound tests technique of cointegration was used to on country-specific model of aggregate expenditure, following the Keynesian theory.
 The result showed that there is a the long-run relationship among the variables used in Nigeria and South Africa. Capital expenditure on infrastructure has positive but insignificant impact on economic growth in Nigeria while it was positive and significant on the economic growth in South Africa. The insignificant impact of capital expenditure on infrastructure on economic growth compare with South Africa may be the major difference in the two economies. This is traceable to lack of accountability and corruption in Nigeria compared to the good governance that truncated corruption and mismanagement in the government circle in South Africa. Tax base has positive and significant impacts on the economic growth in these two countries, this was supported by the Pairwise Granger Causality in which TAX granger caused economic growth in both countries.
 The study recommends injection of sufficient fund into infrastructural development in Nigeria. AS tax contributed positively to economic growth in both economies, it is recommended that tax revenue realized should be judiciously spent by providing the necessary amenities to discourage evasion of tax.

Pengaruh Belanja Modal, Investasi, dan Tenaga Kerja terhadap PDRB Sektor Industri Pengolahan di Provinsi Jambi

Impact of Capital Expenditure, Investment, and Labour on Gross Regional Domestic Product of Manufacturing Sector in Jambi Province
 The manufacturing sector contributes significantly to the Gross Regional Domestic Product (GRDP) of Jambi Province. However, despite the realization of regional government capital expenditure, labor, and private sector investment continued to increase, the contribution of this sector showed a negative trend and its growth rate also experienced a slowdown. This study aims to analyze the effect of capital expenditure, investment, and labor on GRDP of the manufacturing sector in Jambi Province. This study uses secondary data of districts and cities in Jambi Province obtained from the Statistics Indonesia (BPS), Regional Investment Board (BPMD), Ministry of Finance of the Republic of Indonesia, and other supporting agencies during 2011–2015. This research begins with descriptive analysis method to analyze the development of the variables observed, then concluded based on quantitative statistical analysis method to analyze the effect of capital expenditure, investment, and labor on the economy of the manufacturing sector. Results of the analysis indicate that capital expenditure, investment, and labor simultaneously and partially have positive and significant effects on the GRDP of the manufacturing industry sector in Jambi Province.

Indicative assessment of progressive economic development of manufacturers of hotel and restaurant enterprises under influence of capital

The article is devoted to the development of indicators of progressive economic development of factors of production and coefficients of sustainable economic development of the hotel and restaurant business based on the reserve growth of resource potential. The calculation of progressive development indicators is based on determining the extent of the impact of costs by directions (types) of capital investments on improving the efficiency of production and commercial activity, and serves as a tool for managing the progressive growth and sustainable economic development of enterprises of the hotel and restaurant sphere. The paired regression models of the dependence of factors of production (consumption of production resources) and the level of investment and innovation costs of enterprises of the hotel and restaurant industry have been presented in the article, by which the laws of quantitative interaction of the resultant and influencing economic indicators of the estimated processes are explained in mathematical form, and on the basis of them the indicators of the progressive factors of the production are calculated. The impact of capital expenditures on improving the material and technical and technological base of the entity. It has been found that indicators of progressive development (???? 01 2 3 ) determine the degree of impact of a particular type of capital expenditure (Ij) on the development of factors (Ki) and characterize the rate of dynamic growth of efficiency and reduction of the expense of operating activity of the enterprises of the hotel and restaurant type at the expense of carrying out investment-innovation activity. The obtained indicators of progressive and reserve dynamic economic development factors determine the coefficients of sustainable economic development of the enterprise, based on the regularities of dynamic changes of the studied processes and take into account the projected directions and rates of economic efficiency of production and commercial activity of enterprises of the hotel and restaurant economy under the influence of reserve potential. The obtained results make it possible to predict and plan the volume of investments in the areas of investment-innovation activity, as well as the level of growth of efficiency of activity on its basis, which, in turn, allows for further formation of the economic growth strategy and model of management of sustainable economic development of the enterprise.

Impact of Capital Expenditure on Working Capital Management: An Application on Hotel and Travel Companies Listed in Colombo Stock Exchange

Impact of Capital Expenditure on Working Capital Management: An Application on Hotel and Travel Companies Listed in Colombo Stock Exchange

ANALISIS PERAN BELANJA MODAL DAN INVESTASI SWASTA TERHADAP PERTUMBUHAN EKONOMI SERTA DAMPAKNYA PADA KESEJAHTERAAN MASYARAKAT

The purpose of economic development is to improve public welfare. Many factors influenceeconomic growth, including sustainable development. This study is aimed to analyze the impactof capital expenditure and private investment on economic growth of the regency/municipalduring the period of 2010-2015 as well as the impact of economic growth on public welfareproxied by the human development index figures. Using WarpPLS, used purposive samplingmethode, testing is done for the 415 autonomous regional and 93 autonomous municipalsin Indonesia using time series data 2010-015. The results of this study shows that capitalexpenditure positively effect economic growth as well as private investment has positive effecton economic growth. Furthermore, the economic growth has been proven to improve publicwalfare.Keywords: capital expenditure, private investment, economic growth, public welfare

THE IMPACT OF CAPITAL EXPENDITURE OF AGRICULTURAL SECTOR ON ECONOMIC PERFORMANCE: CASE IN NORTH KALIMANTAN PROVINCE, INDONESIA

The aim of this research is to determine the impact of capital expenditure of agricultural sector on the economic performance in North Kalimantan Province, Indonesia. This research uses panel data which combines time series data of 2004-2013 and cross section data of five regencies/cities in North Kalimantan Province, Indonesia. This research uses econometric model approach namely simultaneous equations models which consist of two identity equations and six structural equations. From the analysis it can be concluded that the capital expenditure of agricultural sector have a positive impact and it is significant on the gross regional domestic product of agricultural sector, where every increase of one percent of capital expenditure of agricultural sector will increase the gross regional domestic product of agricultural sector of 42.86%. The capital expenditure of agricultural sector have a positive impact simultaneously on gross regional domestic product, consumption, investment and export regional.

The Impact of Capital Expenditures on Property Performance in Commercial Real Estate

Using a sample of 47,260 annual and 12,276 unique property observations during 2000–2011 we analyze the relationship between capital expenditures and performance by employing 2SLS models, in which capital expenditures are modeled as a function of property characteristics (age, square footage, occupancy rate, leverage, leasing commissions, lagged returns and property type), market conditions (interest rates, credit spread and standard deviation of cap rates) and property fixed effects. Our results reveal that while capital expenditures are mostly idiosyncratic and related to unique property characteristics, they are a significant determinant of property returns. We find persistently strong positive relationship between capital expenditures and excess NPI returns when controlling for the endogeneity of capital expenditures for industrial, office and retail properties. A further analysis reveals that this relationship is driven by the positive impact of building improvements and building expansions, while returns in all property types do not fully adjust to account for tenant improvements.

The Impact of Capital Expenditures on Property Performance in Commercial Real Estate

Using a sample of 47,260 annual and 12,276 unique property observations during 2000 – 2011 we analyze the relationship between capital expenditures and performance by employing 2SLS models, in which capital expenditures are modeled as a function of property characteristics (age, square footage, occupancy rate, leverage, leasing commissions, lagged returns and property type), market conditions (interest rates, credit spread and standard deviation of cap rates) and property fixed effects. We find persistently strong positive relationship between capital expenditures and excess NPI returns when controlling for the endogeneity of capital expenditures for industrial, office and retail properties. A further analysis reveals that this relationship is driven by the positive impact of building improvements and building expansions, while returns do not fully adjust to account for tenant improvements.

The Impact of Capital Expenditure on Cash Holding: Evidence from the Real Estate and Property Sector

The assessment of a company's financial can be ascertained by examining its cash management practices, particularly in relation to achieving an ideal level of Cash Holding. Existing literature indicates that the level of cash reserves held by a firm can serve as an indicator of the quality of its corporate governance framework. The primary aim of this research is to examine the effect of capital expenditures, net working capital, leverage, and board of commissioners towards the cash holdings of companies operating in the real estate and real estate sector. The research focused on the period spanning from 2019 to 2022. The research used an associative research approach, with a sample size of 31 companies that were selected using purposive selection. The data analysis was used a multiple regression approach, specifically employing panel data. The result of the study shows that net working capital, leverage, and the presence of board of commissioners exert a notable affect the cash holdings, however capital expenditures has no significant effect towards cash holdings. The finding shows that it would be prudent for companies operating in the real estate industry to prioritize the efficient management of net working capital and leverage ratios in order to maintain a robust cash position. Moreover, this underscores the imperative of proactive engagement and supervision by the board of commissioners in the process of making budgetary decisions.

Global Food Crisis: Public Capital Expenditure and Agricultural Output in Nigeria

The focus of this paper is to examine the effects of global food crisis on developing countries which most times are considered most vulnerable due to a number of factors ranging from conflicts in the region, to poverty and inequality, and factors that affect policies on agriculture. Issues concerning the use of food as alternative energy sources are still in its infant stages in Africa, and may not be relevant. The paper investigates the impact of capital expenditure on agriculture and credit to agricultural sector on the output of agriculture in Nigeria. Annual data covering 1990 – 2004 were used. Unit roots of the series were examined using Augmented Dickey – Fuller techniques. The overall results indicate that output of agriculture is positively related to capital expenditure on the sector but negatively related to the credit to agriculture. The paper therefore recommends improvements in government capital expenditure on agriculture. Credit policies and institutions should target beneficiaries (rural farmers).

The Economic Impact of Capital Expenditures: Environmental Regulatory Delay as a Source of Strategic Advantage?

This study investigates the impact of environmental regulatory delay on capital market reactions to capital expenditure announcements. Using the time to gain resource consent (regulatory) approval as an indicator of expected resource consent compliance costs, positive valuation effects are found from project announcements when the expected time to gain resource consent approval is long. The findings suggest that by undertaking voluntary capital expenditures with high environmental compliance costs, listed companies can create strategic advantages. For example, long consent times may improve firms’ opportunities to develop specialised capabilities such as early mover advantages, reputational benefits, or enhanced environmental management systems. Alternatively, high environmental compliance costs may inhibit actions by industry competitors and new entrants, resulting in greater expected project NPVs.

Imposed R&D: An examination of the effects of environmental-control requirements on industrial R&D programs

Although much attention has been given to the potential impact of capital expenditures for pollution-abatement equipment on the operating effectiveness and organization of American industry, little or no attention has been given to the amount of diversion from traditional endeavors which environmental-control requirements have caused in industrial R&D and the subsequent impacts of this diversion. This paper deals explicitly with the former of these concerns, namely how industry allocates its R&D resources in a transition period following the imposition of previously ignored operating and product requirements by the government.

Teaching Engineering Economy in Continuing Education

The following is an excerpt from a paper presented at the 79th Annual Conference, American Society for Engineering Education, at Annapolis, Maryland in June 1971. These thoughts seem appropriate considering today's renewed concern with the long-range economic impact of capital expenditures. Raymond P. Lutz Associate Editor