@article{20.500.12766/743,
year = {2025},
month = {3},
url = {https://hdl.handle.net/20.500.12766/743},
abstract = {This paper examines the relationship between capital expenditures (CAPEX) in the private sector and the performance of the UK stock market, specifically focusing on the manufacturing and non-manufacturing sectors. Using quarterly CAPEX data for UK private sector firms and FTSE index data spanning from Q1 1997 to Q1 2024, we employ a robust methodological framework that integrates fractional integration analysis, Granger causality tests, and Continuous Wavelet Transform (CWT). The findings reveal sector-specific dynamics. CAPEX in the non-manufacturing sector exhibits a significant positive causal relationship with FTSE index movements, particularly in short- and medium-term horizons, highlighting its role as a leading indicator of market performance. In contrast, CAPEX in the manufacturing sector demonstrates weaker and less immediate correlations, reflecting its long-term, structural nature and sensitivity to economic cycles. Persistence analysis confirms the long memory behavior of both CAPEX series, with non-manufacturing investments displaying higher stability and predictability. These results underscore the heterogeneity of CAPEX impacts across sectors and emphasize the importance of distinguishing between short-term and long-term investment responses when evaluating stock market dynamics.},
publisher = {PKP},
title = {Capital Expenditure Decisions in the Private Sector and Their Impact on Uk Stock Market Performance A Fractional Integration Analysis},
doi = {10.63332/joph.v5i1.675},
journal = {Journal of Posthumanism,},
keywords = {Capex},
keywords = {Non-Manufacturing Companies},
keywords = {Manufacturing Companies},
keywords = {Market Capitalization},
keywords = {Causality Test},
keywords = {Wavelet Analysis},
volume = {5},
author = {Monge, Manuel and Aracil Jordá, Jorge and Infante, Juan},
}