The impact of capital expenditures on working capital management in publicly listed food and beverage manufacturing firms of Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Vietnam for the Period 2009-2013

• Main Authors: Amoranto, Maria Marinela B., Balboa, Steffi P., Cruz, Gabrielle Marie A., Wong, Kimberly Anne
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Capital investments > Asia; Financial institutions > Asia; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/5719
• Institution: De La Salle University

This paper aims to determine if capital expenditures have a significant impact on working capital management. The study would like to determine if acquiring additional fixed assets affect the working capital of a firm. The researchers will make use of the data to be obtained from the selected publicly listed food and beverage manufacturing companies of Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Vietnam. It will include ten selected firms from each of the six selected countries for the period of 2009-2013. In determining the results, the researchers will use panel data regression analysis to determine the relationship of the two proxies of working capital management such as net liquidity balance and working capital requirement to the independent variable which is capital expenditure, and control variables such as financial expenditure, operating expenditure, growth, debt to equity ratio, and operational cash flows. To validate the findings, simple linear regression will be used to determine the relationship between the two proxies of working capital management (net liquidity balance and working capital requirement) and capital expenditures for the data in the Philippines. The manufacturing firms with retailing operations and milling companies are analyzed separately in the linear regression. The simple linear regression results were found to conform to business realities. Furthermore, the variables to be observed will include several data to be collected from the different firms, as well as data to be collected from different time periods.