University of Twente Student Theses
As of Friday, 8 August 2025, the current Student Theses repository is no longer available for thesis uploads. A new Student Theses repository will be available starting Friday, 15 August 2025.
Determinants of capital structure: Empirical evidence from Pakistan
Ali, Irfan (2011) Determinants of capital structure: Empirical evidence from Pakistan.
![]() |
PDF
926kB |
Abstract: | This study investigates capital structure of nonfinancial firms registered on Karachi Stock Exchange (Pakistan) from 2003 to 2008 to find which independent variables determine the capital structure of Pakistani firms. We find statistically significant coefficients for profitability, size, tangibility, growth, dividend and inflation. The negative relationships between profitability and leverage; positive relationships between growth and long term debt and dividend and total debt of firms confirm the presence of pecking order theory in determining the financing behavior of Pakistani firms. The strong positive relationships between tangibility and leverage and size and leverage support the theortical predictions of trade-off theory. The positive relationship between expected future inflation and current borrowing supports market timing theory. The research finds significant change in financing behavior of firms across industries. We find partially different results from other studies in Pakistan as well as in developing countries. Conclusion from perior research from developed world is also valid in Pakistan. |
Item Type: | Essay (Master) |
Faculty: | BMS: Behavioural, Management and Social Sciences |
Subject: | 85 business administration, organizational science |
Programme: | Business Administration MSc (60644) |
Link to this item: | https://purl.utwente.nl/essays/61143 |
Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
Repository Staff Only: item control page