Abstract:
The purpose of the study was to find out how capital expenditures (CAPEX) influenced
Pakistani automobile industries' performance. In this study, we used panel data analysis of
companies that are listed in Pakistan stock exchange. The sample for this study
panel dataset of automobile firms in Pakistan over a specific period. Secondary
used for collecting financial data, such as capital expenditure, company’s performance
indicator (return on assets), and cash flow variables. Multiple regression analysis is employed
to analyze the relationship between capital expenditure and firm performance
considering the moderating effect of cash flows. Based on this research, Pakistani automobile
companies may become more profitable by raising their capital expenditures and appropriate
cash flows. The study also examines how cash flows, a moderator that can either strengthen
or diminish the link between CAPEX and performance of the firms, play a part. The study's
findings could contribute to clarifying how capital expenditures and company performance
relate to one another in Pakistan's textile industry. The study may have aided future research
projects for the researchers.
