Relationship Between Investment and Cash Flow Under High and Low Investment Opportunities: Evidence from Pakistani Manufacturing Firms
Journal Title: INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY - Year 2017, Vol 12, Issue 1
Abstract
This paper examines the relationship between cash flow and investment under high and low investment opportunities of 167 Pakistani non-financial manufacturing firms listed in the Karachi Stock Exchange during the period 2004-2013. Tobins Q is employed to capture the investment opportunities and sales are taken as control variable. A panel regression model is used to investigate the relationship of cash flow, Tobins Q and sales on investment. In case of high investment opportunities firms, the relationship of investment and cash flow is positive and significant while under low investment opportunities firms, this relationship is also positive but insignificant. These results indicate that the high opportunities firms rely mostly on internally generated cash flow whereas the low investment opportunities firms prefer to distribute its earnings as dividend.
Authors and Affiliations
Dr Mohammad Salih Memon, Imtiaz Zahid, Maria Shaikh, Aisha Bashir Shah, Akmal Khan, Dr. Faiz Muhammd Shaikh
Keywords
Related Articles
- EP ID EP654113
- DOI 10.24297/ijmit.v12i1.6059
- Views 144
- Downloads 0
EFFECTS OF UNSECURED PERSONAL LOANS ON HOUSEHOLD FINANCIAL HEALTH OF PRIMARY SCHOOL TEACHERS IN EMINING DIVISION, BARINGO COUNTY, KENYA
Credit facilities include both secured and unsecured loans. For employees, unsecured personal loans have become more popular due to the relative ease and speed at which they can be obtained. The study focused on three ar...
Mapping Issues of Textile Industry of Pakistan with Trade Policy Framework
The current research investigates Mapping Issues of Textile Industry of Pakistan with Trade Policy Framework. Data were collected from Primary as well as secondary sources It is a statistical research technique in decisi...
Efficiency Evaluation of State Transport Undertakings of India using DEA-NN approach
The economy of any nation depends on the structure and functioning of its various sectors. Transport sector is one of the vital sectors for the financial system of any developing country. All other sectors are dependent...
Tacit to Tacit Knowledge Sharing using ICT In Higher Education
The creation and transfer of tacit to tacit knowledge is very important in higher education. Tacit knowledge is non-linguistic, non-numerical form of knowledge that is highly personal and context specific and deeply root...
THE IMPACT OF FACTORS OF SUCCESS ON THE IN-HOUSE SOFTWARE DEVELOPMENT FOR PRESERVING TACIT KNOWLEDGE: SURVEY
Pair-programming is aimed to provide knowledge-intensive organisations to better manage their knowledge value. There are multiple ways to capture organizations knowledge and make it available to all their members while i...