Determinants of capital structure: a case study of automobile sector of Pakistan
| dc.contributor.author | Talat Afza | |
| dc.contributor.author | Amer Hussain | |
| dc.date.accessioned | 2011-07-25T15:17:33Z | |
| dc.date.available | 2011-07-25T15:17:33Z | |
| dc.date.issued | 2011 | |
| dc.description.abstract | The present study focuses on the determinants of capital structure of Automobile Sector of Pakistan. The research examines whether the industry specific attributes of Automobile Sector affect the capital structure choice of firms and validates our results with Rajan and Zingales (1995) and Booth et. al. (2001) and provide an explanation for the behavior of firms in choosing debt equity ratio. The study uses pooled data regression model on the sample of 26 firms of Automobile sector of Pakistan and uses liquidity and cost of debt variables which were not used in earlier studies in Pakistan and have significant influence on the debt and equity financing decisions. The results show that the firms which are large in size and having good assets structure should go for debt financing to finance new projects. The results of profitability, taxes and liquidity are statistically significant and are consistent with Static Trade off Theory and Pecking Order Theory. | en_US |
| dc.identifier.citation | Interdisciplinary Journal of Contemporary Research in Business, Vol 2, No 10, pp 219-228, Feb 2011 | en_US |
| dc.identifier.uri | https://escholar.umt.edu.pk/handle/123456789/160 | |
| dc.language.iso | en | en_US |
| dc.publisher | Interdisciplinary Journal of Contemporary Research in Business | en_US |
| dc.subject | Capital Structure | en_US |
| dc.subject | Debt Equity ratio | en_US |
| dc.subject | Cost of Debt | en_US |
| dc.title | Determinants of capital structure: a case study of automobile sector of Pakistan | en_US |
| dc.type | Article | en_US |