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The determinant of capital expenditure: empirical evidence from Bursa Malaysia / Mohd Ariff Ridzuan Mohd Asih

The aim of this study was to determine the effect of free cash flow, dividend payout ratio and investment opportunities on capital expenditure of companies listed at the Bursa Malaysia. Companies engage in various ways to finance their investments, including equity financing (internally generated fu...

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Main Author: Mohd Asih, Mohd Ariff Ridzuan
Format: Student Project
Language:English
Published: 2019
Subjects:
Capital costs
Online Access:https://ir.uitm.edu.my/id/eprint/108455/1/108455.pdf
https://ir.uitm.edu.my/id/eprint/108455/
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spelling my.uitm.ir.1084552025-02-26T16:26:22Z https://ir.uitm.edu.my/id/eprint/108455/ The determinant of capital expenditure: empirical evidence from Bursa Malaysia / Mohd Ariff Ridzuan Mohd Asih Mohd Asih, Mohd Ariff Ridzuan Capital costs The aim of this study was to determine the effect of free cash flow, dividend payout ratio and investment opportunities on capital expenditure of companies listed at the Bursa Malaysia. Companies engage in various ways to finance their investments, including equity financing (internally generated funds and externally raised funds) and or debt. Free cash flow tempts managers to expand the scope of operations and the size of the firm, these spending is seen as unprofitable especially to the shareholders, who see it worthwhile for the firm to issue dividends instead of retaining the funds to invest. The study aimed at determining the the effect of the level of free cash flow and the amount of extra cash that can be committed on investment decisions by companies that are listed at the Bursa Malaysia. Data was obtained from annual statements of listed companies. The study covered a five year period from 2013 to 2017. Multiple linear regression method was used to identify the existence of the relationship. The regression model results point out that Free cash flow have a positive impact on Net Capital Expenditure. From the organizations considered, it was established that there is a positive fairly insignificant relationship between dividend payout ratio and capital expenditure. This study used only three variables as the measures of the relationship between free cash flows, dividend payout ratio and investment opportunities on investments, hence there is need to carry out the study with other different factors in order to be able to establish whether there are other major factors that have a relationship with capital expenditure at the Bursa Malaysia and in companies not listed at the Bursa Malaysia. 2019 Student Project NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/108455/1/108455.pdf The determinant of capital expenditure: empirical evidence from Bursa Malaysia / Mohd Ariff Ridzuan Mohd Asih. (2019) [Student Project] (Submitted)
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Capital costs
spellingShingle Capital costs
Mohd Asih, Mohd Ariff Ridzuan
The determinant of capital expenditure: empirical evidence from Bursa Malaysia / Mohd Ariff Ridzuan Mohd Asih
description The aim of this study was to determine the effect of free cash flow, dividend payout ratio and investment opportunities on capital expenditure of companies listed at the Bursa Malaysia. Companies engage in various ways to finance their investments, including equity financing (internally generated funds and externally raised funds) and or debt. Free cash flow tempts managers to expand the scope of operations and the size of the firm, these spending is seen as unprofitable especially to the shareholders, who see it worthwhile for the firm to issue dividends instead of retaining the funds to invest. The study aimed at determining the the effect of the level of free cash flow and the amount of extra cash that can be committed on investment decisions by companies that are listed at the Bursa Malaysia. Data was obtained from annual statements of listed companies. The study covered a five year period from 2013 to 2017. Multiple linear regression method was used to identify the existence of the relationship. The regression model results point out that Free cash flow have a positive impact on Net Capital Expenditure. From the organizations considered, it was established that there is a positive fairly insignificant relationship between dividend payout ratio and capital expenditure. This study used only three variables as the measures of the relationship between free cash flows, dividend payout ratio and investment opportunities on investments, hence there is need to carry out the study with other different factors in order to be able to establish whether there are other major factors that have a relationship with capital expenditure at the Bursa Malaysia and in companies not listed at the Bursa Malaysia.
format Student Project
author Mohd Asih, Mohd Ariff Ridzuan
author_facet Mohd Asih, Mohd Ariff Ridzuan
author_sort Mohd Asih, Mohd Ariff Ridzuan
title The determinant of capital expenditure: empirical evidence from Bursa Malaysia / Mohd Ariff Ridzuan Mohd Asih
title_short The determinant of capital expenditure: empirical evidence from Bursa Malaysia / Mohd Ariff Ridzuan Mohd Asih
title_full The determinant of capital expenditure: empirical evidence from Bursa Malaysia / Mohd Ariff Ridzuan Mohd Asih
title_fullStr The determinant of capital expenditure: empirical evidence from Bursa Malaysia / Mohd Ariff Ridzuan Mohd Asih
title_full_unstemmed The determinant of capital expenditure: empirical evidence from Bursa Malaysia / Mohd Ariff Ridzuan Mohd Asih
title_sort determinant of capital expenditure: empirical evidence from bursa malaysia / mohd ariff ridzuan mohd asih
publishDate 2019
url https://ir.uitm.edu.my/id/eprint/108455/1/108455.pdf
https://ir.uitm.edu.my/id/eprint/108455/
_version_ 1825165098200596480
score 13.239859

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