EconPapers    
Economics at your fingertips  
 

CAPITAL EXPENDITURE DECISIONS AND LONG TERM VALUE OF THE FIRM: EVIDENCE FROM NIGERIAN MANUFACTURING COMPANIES

Uwem Etim Uwah
Additional contact information
Uwem Etim Uwah: Akwa Ibom State University, Postal: Department of Accounting, Faculty of Management Science, Uyo, Akwa Ibom State.

International Journal of Accounting and Finance (IJAF), 2019, vol. 08, issue 1, 152-169

Abstract: This study determined the extent to which capital expenditure decisions made by listed manufacturing companies in Nigeria relate with the value of the firms in the long term. The ex post facto and correlational research designs were adopted for the study. Secondary data were extracted from the Nigerian Stock Exchange Fact Books for the period, 2010 – 2016. The number of manufacturing companies listed in the Stock Exchange during this period was 83, and the sample size used was 69. With the aid of regression analyses, the findings revealed that capital expenditure decisions had a significant relationship with long term value of manufacturing firms. The study concluded that capital expenditure decisions have a significant relationship with the long term value of manufacturing firms in Nigeria. It was recommended that management of manufacturing companies should ensure the holistic use of all techniques, exploring risks, real and growth options analyses as well as portfolio management techniques involving capital assets, in appraising capital investments before taking decisions.

Keywords: Capital expenditure decisions; Long term value; Economic value added; Market value added; Real option analysis. (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://research.icanig.org/documents/CEDLTVFENMC.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:ijafic:0020

Access Statistics for this article

International Journal of Accounting and Finance (IJAF) is currently edited by Ben Ukaegbu and Folorunsho Ajide

More articles in International Journal of Accounting and Finance (IJAF) from The Institute of Chartered Accountants of Nigeria (ICAN)
Bibliographic data for series maintained by Daniel Akanbi ().

 
Page updated 2019-12-16
Handle: RePEc:ris:ijafic:0020