Determinants of Net Capital Expenditure Cash Outflows: Evidence from the Pharmaceutical Sector of Bangladesh

  • Md. Thasinul Abedin Department of Accounting, University of Chittagong, Bangladesh
  • Kanon Kumar Sen Faculty of Business studies, University of Dhaka, Dhaka-1100, Bangladesh
  • Mahmuda Akter Department of Accounting and Information Systems, Faculty of Business studies, University of Dhaka, Dhaka-1100, Bangladesh


This study attempts to identify the key determinants of net capital expenditure outflows for a panel of 14 listed pharmaceutical companies. The study has used data from 2003-2015 for each company. The study finds that previous year net capital expenditure outflows, the age of the company, size of the company, leverage of the company, business risk of the company, and independent directors on the board of directors’ panel are the key determinants of net capital expenditure outflows. The study uses Panel GMM approach along with Fixed Effect OLS and PCSE OLS. Age of the company, size of the company, and percentage of independent directors have a significant positive impact on net capital expenditure outflows unlike business risk and leverage of the company.

Keywords: Pharmaceutical Sector, Net Capital Expenditure Outflows, Business Risk

JEL Classification: C33, E22, L65


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How to Cite
ABEDIN, Md. Thasinul; SEN, Kanon Kumar; AKTER, Mahmuda. Determinants of Net Capital Expenditure Cash Outflows: Evidence from the Pharmaceutical Sector of Bangladesh. Asian Journal of Accounting Perspectives, [S.l.], p. 73-98, dec. 2017. ISSN 0128-0384. Available at: <>. Date accessed: 21 apr. 2018.