Abstract
Capital structure and its relation with firm value continue to attract researcher’s
interest around the world to get deeper understanding on the matter concerned. The
aim of this paper is to empirically investigate whether capital structure choice
influences firm profitability or not in listed non-financial firms of Pakistan. Panel
data regression (fixed effects model) was used to examine the relationship and effect
of capital structure choice and firm performance. Secondary data from 2008-2013
was used for this study. The findings of the study revealed that capital structure
choice measured through short-term debt (STD), long-term debt (LTD) and total debt
(TD) has a negative but statistically weak relationship with firm performance
measured through ROA and ROE. In case of firm performance measured through
GPR, capital structure choice measured through LTD and TD shows positive and
statistically significant relationship with firm performance whereas in case of STD it
is negative but statistically significant.
Zia ur Rehman, Muhammad Ayub Siddiqui, Asad Khan. (2016) Influence of Capital Structure Choice on Firm Performance: A Case of Listed Non-Financial Firms of Pakistan, The Journal of Humanities & Social Sciences, Volume-24, Issue-1.
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