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Determinants of Capital Structure: A Case of the Non-Financial Sector of Pakistan

김창수|류지수|Maqbool Ahmad
한국아시아학회 (The Korean Association Of Asian Studies(Kaas))|2016.05|아시아연구 (The Journal of Asian Studies)|제19권 제2호|pp. 27-66

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참고문헌

키워드

SizeReturn on Assets부채비율Debt RatioSales GrowthTangibilityCurrent RatioCorporate Governance Index.총 자산 이익률현금 비율판매 성장
주제분류지역학

초록

This research endeavoured to explore two schemes of the literature of capital structure i. e. antecedents and consequences of debt borrowing on firm specific factors and their impact on firm's value. Previous studies tried to investigate the impact of debt borrowings on firm value. However, integration of these two ideas is non-existing. This research fills such literature gap and explores the determinants of capital structure to know whether these financing decisions are optimal or not. Non-financial sector firms are 70%, of total firms listed on KSE. It selected proposed research panel data for 161 non-financial firms listed at KSE for 2007 to 2014 and analyzed all of them. Its results show that liquidity has 69% influencesin making the decision regarding debt financing, that return on assets has 25% influences on financing decision regarding debt that CG index is negatively linked with debt ratio, and that ROA in terms of the size of a firm is impacted by 29%. And thus this research provides some useful information for managers to know whether their financing decision is optimal or not, and how to make their financing decisions.

Abstract

This research endeavoured to explore two schemes of the literature of capital structure i. e. antecedents and consequences of debt borrowing on firm specific factors and their impact on firm's value. Previous studies tried to investigate the impact of debt borrowings on firm value. However, integration of these two ideas is non-existing. This research fills such literature gap and explores the determinants of capital structure to know whether these financing decisions are optimal or not. Non-financial sector firms are 70%, of total firms listed on KSE. It selected proposed research panel data for 161 non-financial firms listed at KSE for 2007 to 2014 and analyzed all of them. Its results show that liquidity has 69% influencesin making the decision regarding debt financing, that return on assets has 25% influences on financing decision regarding debt that CG index is negatively linked with debt ratio, and that ROA in terms of the size of a firm is impacted by 29%. And thus this research provides some useful information for managers to know whether their financing decision is optimal or not, and how to make their financing decisions.

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