The Impact of firms’ capital expenditure on working capital management

an empirical study across industries in Thailand

Research output: Contribution to journalArticle


The purpose of this research is to investigate the impact of firms’ capital expenditure on their working capital management. The author used the data colleted from listed companies in the Thailand Stock Exchange. The study used Shulman and Cox’s (1985) Net Liquidity Balance and Working Capital Requirement as a proxy for working capital measurement and developed multiple regression models. The empirical research found that firms’ capital expenditure has a significant impact on working capital management. The study also found that the firms’ operating cash flow, which was recognized as a control variable, has a significant relationship with working capital management, which is consistent with findings of previous similar researches. The findings enhance the knowledge base of working capital management and will help companies manage working capital efficiently in growing situations associated with capital expenditure.
Original languageEnglish
Pages (from-to)8-21
Number of pages14
JournalInternational management review
Issue number1
Publication statusPublished - 2008
Externally publishedYes


  • capital expenditure
  • Thailand stock exchange
  • working capital
  • firm

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