Review of Capital Investment and Returns

Abstract

This paper aims to evaluate the relationship between capital investment effects to firm liquidity, stock value and Economic welfare. Previous studies have already established the correlation between capital investments and stock prices which will also be presented in this paper. Capital Investment decision, budgeting, and procedures are also crucial factors to be considered by a firm. Capital investment decision takes into consideration the long-run profitability of the firm as well as the impact of the investment on the economy’s growth.

Keywords: Capital investment; Stock Value; Total equity; Economy’s growth.