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

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


Piriya Muraleetharan

https://doi.org/10.31142/ijtsrd21360



Piriya Muraleetharan "Impact of Capital Expenditure on Working Capital Management: An Application on Hotel and Travel Companies Listed in Colombo Stock Exchange" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-2, February 2019, pp.327-330, URL: https://www.ijtsrd.com/papers/ijtsrd21360.pdf

This study is designed to examine on impact of capital expenditure on working capital management, an application on hotel and travel companies listed in Colombo stock exchange. Capital expenditure of the hotel and travel was used as the independent variable for the study whilst the dependent variables constituted some characteristic indicators that can affect the hotel and travel such as, net liquidity balance & working capital requirement. Data was collected from 125 annual reports which are related to 25 hotel and travel listed in Colombo Stock Exchange for five years from 2012 to 2016. Researcher used to regression analyze the data. Regression model was used for analyzing the relationship between Capital Expenditure and Working Capital Management for the sample firms. A significant negative relationship was found between net liquidity balance and Capital Expenditure, which implies that these firms don’t increase the balance of most liquid assets when faced with capital expenditure since they don’t have enough internally generated funds to be used in long term fixed investments. Furthermore, a significant negative relationship is also found between working capital requirement and Capital expenditure, which implies that these firms are efficiently managing the non-financial components to enhance their cash, balances to be used in speculative and operational activities.

Capital expenditure, Colombo Stock Exchange, net liquidity balance, working capital requirement


IJTSRD21360
Volume-3 | Issue-2, February 2019
327-330
IJTSRD | www.ijtsrd.com | E-ISSN 2456-6470
Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0)

International Journal of Trend in Scientific Research and Development - IJTSRD having online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International Journal which provides rapid publication of your research articles and aims to promote the theory and practice along with knowledge sharing between researchers, developers, engineers, students, and practitioners working in and around the world in many areas like Sciences, Technology, Innovation, Engineering, Agriculture, Management and many more and it is recommended by all Universities, review articles and short communications in all subjects. IJTSRD running an International Journal who are proving quality publication of peer reviewed and refereed international journals from diverse fields that emphasizes new research, development and their applications. IJTSRD provides an online access to exchange your research work, technical notes & surveying results among professionals throughout the world in e-journals. IJTSRD is a fastest growing and dynamic professional organization. The aim of this organization is to provide access not only to world class research resources, but through its professionals aim to bring in a significant transformation in the real of open access journals and online publishing.

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