The impact of firm's capital expenditure on working capital management of fast moving consumer goods industry in Vietnam

Abstract

"Cash is king" is a phrase often used in business language to highlight the importance of effective working capital management. This is a necessary and sufficient condition for businesses to survive and develop sustainably. Working capital not only helps businesses to meet short-term obligations such as repaying loans but also to invest in long-term goals such as improving productivity, expanding markets, creating new products, attracting more customers. One of the main factors that finance managers need to pay attention to is capital expenditure. Determine whether capital expenditure has an impact on working capital management of fast-moving consumer goods companies in Viet Nam is the aim of this research. Research approaching 50 data of FMCG companies in Vietnam. The hypotheses were analyzed using the panel study method. To conclude, there were an insignificant relationship between capital expenditure and net liquidity balance as well as between capital expenditure and working capital requirement.