Impact of Financial Leverage on Firm’s Performance – A Case of Cement Production Industries of Pakistan.

Author(s)

Saiqa Yousaf ,

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Volume 6 - January 2017 (01)

Abstract

This study is an attempt to set up a stochastic relationship between financial leverage and firm’s performance of cement industry operating in Pakistan. For this study 23cement producing firms working out of these 18 are consolidated in the review and six years yearly information from2010 to 2015 with respect to financial leverage influence on firm’s performance for said sector were contemplated. The specimen measure for eighteen firms for a long time comprises of 106 perceptions. A Conventional Slightest Square model is connected on the information to build up a causal relationship between the factors. The review finds that financial leverage influence has a factually huge opposite effect on firm’s performance at 99% certainty interim.

Keywords

Financial Leverage, Firms’ profitability, Cement Sector

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