Abstract:
This study investigates the impact of determinants of capital expenditure on
manufacturing sector in Sri Lanka. Free cash flow, ROA, financial leverage and size
of the firm are the independent variables represents the determinants of capital
expenditure which is the dependent variable. Data are collected from 15
manufacturing companies during the period of 2010-2014. Multiple regression model
is used to develop a relationship between capital expenditure and the determinants
of that. I find that there is a relationship between ROA and capital expenditure and
there is a relationship between size of the company and capital expenditure.
