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Relationship between Non-current Assets & Firms Profitability

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  • iqbal, athar
  • mati, madhu

Abstract

The current study examines the relation between capital еxpеnditurе and earnings of the companies which are non-financial. The scope of research is related to the firm’s profitability and the relationship with the noncurrent assets as managing working capital and capital expenditure efficiently affects the profitability of the firm. Last ten years data of non – financial firms listed at KSE 100 index was taken. It includes Cement, Manufacturing, Engineering, Chemical, Paper, Sugar, Textile, Transport, Tobacco, Vanaspati and Jute etc for this purpose Multiple regression analysis has been utilized to find out the effects of non – current (I.V.) on profitability (D.V). It is concluded that there is an association between Non-Current Asset and Firms Profitability indicating hypothesis is accepted.

Suggested Citation

  • iqbal, athar & mati, madhu, 2012. "Relationship between Non-current Assets & Firms Profitability," MPRA Paper 44132, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:44132
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    References listed on IDEAS

    as
    1. J P Singh & Shishir Pandey, 2008. "Impact of Working Capital Management in the Profitability of Hindalco Industries Limited," The IUP Journal of Financial Economics, IUP Publications, vol. 0(4), pages 62-72, December.
    2. Morris Lamberson, 1995. "Changes in Working Capital of Small Firms in Relation to Changes in Economic Activity," American Journal of Business, Emerald Group Publishing, vol. 10(2), pages 45-50.
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    Cited by:

    1. Demyen Suzana & Milos Laura Raisa, 2015. "Productivity, Technical Equipment And Sales. Empirical Evidence From The Romanian Companies," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 360-368, December.
    2. Demyen Suzana & Milos Laura Raisa, 2015. "Productivity, Technical Equipment And Sales. Empirical Evidence From The Romanian Companies," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 0, pages 360-368, December.

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    More about this item

    Keywords

    Non-current Assets; Firms profitability;

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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