The Determinants of Capital Structure: A Study on Cement Sector of Pakistan

Author(s)

Wafa Farrukh , Muzaffar Asad ,

Download Full PDF Pages: 16-26 | Views: 350 | Downloads: 99 | DOI: 10.5281/zenodo.3468778

Volume 6 - February 2017 (02)

Abstract

This exploration/ study about has been directed to the capital structure of the concrete business Pakistan taking the example of 15 organizations out of the number of population of 22 organizations enrolled on the Karachi stock trade of the period 2012 to 2016. This review utilized the panel least square method of regression through the E-View software to discover the relationship of dependent and independent factors. It has taken leverage as a dependent variable and profitability, growth, firm size, liquidity, tangibility of assets and non- debt tax shield as independent factors. Following outcomes are accomplished after the examination then appeared in this study. The independent factors comprising liquidity and profitability have a substantial effect and contrarily linked with leverage, which implies that if these factors rise leverage will diminish. Additional variable consist of non-debt tax shield plus growth likewise take critical effect and a favorable association which implies that if these two factors surge, leverage will reduce. The remaining two factors measure tangibility of assets and firm size has insignificant effect on leverage that implies that there would not be any effect of change transpires in the factors on leverage.

Keywords

 Capital structure, profitability, growth, firm size, liquidity, the tangibility of assets, non-debt tax shield and leverage. 

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