Implication capital expenditure on the financial performance of micro-enterprises in selected areas in Cavite / by Alyssa R. Asas, Ericka Mae R. Bautista and Mikee M. Clamor.

By: Contributor(s): Material type: TextTextLanguage: English Publication details: Indang, Cavite : 2018. Cavite State University- Main Campus,Description: xii, 71 pages : illustrations ; 28 cmContent type:
  • text
Media type:
  • unmediated
Carrier type:
  • volume
Subject(s): DDC classification:
  • 658.152  As1 2018
Online resources: Production credits:
  • College of Economics, Management, and Development Studies (CEMDS)
Abstract: ASAS, ALYSSA R.; BAUTISTA, ERICKA MAE R.; CLAMOR, MIKEE M. Implication of Capital Expenditure on the Financial Performance of Micro- Enterprises in Selected Areas in Cavite. Undergraduate Thesis. Bachelor of Science in Business Management major in Financial Management. Cavite State University, Indang, Cavite. December 2017. Adviser: Mr. Zandro M. Catacutan. The study sought to analyze the implication of capital expenditure on the financial performance of micro-enterprises in selected areas in Cavite. It was conducted from August to December 2017 in selected areas namely Dasmarinas City, General Trias City, Tanza and Trece Martires City. It aimed to determine the business profile, nature of capital expenditure used, level of priority in each financial and non-financial factors affecting capital expenditure, financial performance and relationship between business profile as to nature and income and nature of capital expenditure and between capital expenditure and financial performance of micro-enterprises. The data were analyzed using frequency, weighted means, standard deviation, financial ratios, Chi Square, Point Biserial Correlation Coefficient and General Linear Model. One hundred respondents were personally interviewed using an interview schedule. In addition, 100 financial statements of micro-enterprises were gathered from the Securities and Exchange Commission. The study identified that micro-enterprises were mostly sole proprietor, operating from 5 to 8 years, with an average of 3 to 4 employees and had an income between P100,001 to P250,000. Repair of fixed assets was the capital expenditure incurred mostly by businesses. Allocation of cash, additional capital, and incremental profit on nature of capital expenditure, as well as dealing with competitors’ activities and increase in demand, were moderately prioritize on capital expenditure decisions while allocation of borrowed funds was lowly prioritize. The study shown that micro-enterprises were liquid but not solvent and quite profitable. There was a significant relationship between business profile as to nature and income and nature of capital expenditure. A significant relationship was also established between capital expenditure and financial performance. The study concluded based on financial performance that micro-enterprises were leaning more on borrowed funds. As debt increases, the equity decreases which affected the decision negatively. Computer based business tend to repair and add fixed asset while food services mostly replace fixed asset. Businesses with hi gher income tend to add fixed asset on the other hand, businesses with lower income tend to either repair or replace asset. It was also concluded that as capital expenditure increases, financial performance also increases. The researchers recommended to have a different scope with a larger sample size and broader geographical coverage. It was also recommended to further study the two major nature of capital expenditure to understand the relationship better.
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Theses / Manuscripts Theses / Manuscripts Ladislao N. Diwa Memorial Library Theses Section Non-fiction 658.152 As1 2018 (Browse shelf(Opens below)) Link to resource Room use only T-7309 00011840

Thesis (Bachelor of Science in Business Management Major in Financial Management) Cavite State University

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

ASAS, ALYSSA R.; BAUTISTA, ERICKA MAE R.; CLAMOR, MIKEE M. Implication of Capital Expenditure on the Financial Performance of Micro- Enterprises in Selected Areas in Cavite. Undergraduate Thesis. Bachelor of Science in Business Management major in Financial Management. Cavite State University, Indang, Cavite. December 2017. Adviser: Mr. Zandro M. Catacutan.

The study sought to analyze the implication of capital expenditure on the financial performance of micro-enterprises in selected areas in Cavite. It was conducted from
August to December 2017 in selected areas namely Dasmarinas City, General Trias City, Tanza and Trece Martires City. It aimed to determine the business profile, nature of capital expenditure used, level of priority in each financial and non-financial factors affecting capital expenditure, financial performance and relationship between business profile as to nature and income and nature of capital expenditure and between capital expenditure and financial performance of micro-enterprises.

The data were analyzed using frequency, weighted means, standard deviation, financial ratios, Chi Square, Point Biserial Correlation Coefficient and General Linear Model. One hundred respondents were personally interviewed using an interview schedule. In addition, 100 financial statements of micro-enterprises were gathered from the Securities and Exchange Commission.

The study identified that micro-enterprises were mostly sole proprietor, operating from 5 to 8 years, with an average of 3 to 4 employees and had an income between P100,001 to P250,000. Repair of fixed assets was the capital expenditure incurred mostly by businesses. Allocation of cash, additional capital, and incremental profit on nature of capital expenditure, as well as dealing with competitors’ activities and increase in demand, were moderately prioritize on capital expenditure decisions while allocation of borrowed funds was lowly prioritize. The study shown that micro-enterprises were liquid but not solvent and quite profitable. There was a significant relationship between business profile as to nature and income and nature of capital expenditure. A significant relationship was also established between capital expenditure and financial performance.

The study concluded based on financial performance that micro-enterprises were leaning more on borrowed funds. As debt increases, the equity decreases which affected the decision negatively. Computer based business tend to repair and add fixed asset while food services mostly replace fixed asset. Businesses with hi gher income tend to add fixed asset on the other hand, businesses with lower income tend to either repair or replace asset. It was also concluded that as capital expenditure increases, financial performance also increases.

The researchers recommended to have a different scope with a larger sample size and broader geographical coverage. It was also recommended to further study the two major nature of capital expenditure to understand the relationship better.

Submitted copy to the University Library. 02/05/2018 T-7309

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