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This study aims to find a relationship between the structure of capital & profitability. Various parameters namely Short-term & long-term Debts to Asset Ratio, Funded Capital Ratio, Funded Debt Ratio, Current Debt Ratio, Funded Asset Ratio & Sales Growth as an independent variable & Return on Assets of as dependent variable to find a relationship between Capital Structure & Profitability. 28 companies in Cement & Automobile sector of Pakistan Stock Exchange were chosen randomly as a sample. Secondary data for 7 years was collected from audited consolidated financial statements & analyzed through descriptive statistical techniques namely Correlation & Regression. Housman test was used for selection of model. Results display both positive &negative relationship between the variables in Cement & Automobile sector. The study contributes in the existing literature of finance especially in the context of emerging economies like Pakistan.

Adnan Ali, Amir Ullah, Pir Qasim Shah, Naveed Shehzad, Wasiq Nawab. (2016) Impact of Capital Structure on Profitability: A Comparative Study of Cement &Automobile Sector of Pakistan , Journal of Managerial Sciences, Volume 10, Issue 1.
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