Enhanced working capital linked to increased investment in fixed assets.
The study explores how the money flowing into a company affects its investment in fixed assets. The researchers found that different sources of funds influence how much a company invests in fixed assets. They also discovered that as a company's fixed assets increase, so does its working capital. This means that fixed assets and working capital go hand in hand. The study combines financial accounting principles with statistical techniques to create a model that helps predict how different sources of funds impact a company's assets.