The impact of leverage on financial performance of the firm -a case of family owned businesses in Pakistan
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Date
2014
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University of Management and Technology
Abstract
The vital aim of this study is to determine that how leverage impacts on the financial performance of the firm under the context of family owned firms in Pakistan. At the same this attempt will be useful for the financial manager of family owned firms to establish a pattern that how much percentage change in the level of debt will affect the performance of the family owned business.
For the purpose of study a sample of 61 family owned firms relating to various economic sectors of Pakistan has been extracted which are currently listed on Karachi Stock Exchange. To find out which companies are family owned a criteria has been established using various research articles and family business journals.
Financial Performance has been measured through five different dimensions such as Return on Asset (ROA), Return on Equity (ROE), Earning per Share (EPS), Market book Value ratio (MBVR) and Tobinsq (TQ). Leverage, has been proxies as Sort term debt as percentage total assets, long term debt in relation total assets and total debt to total assets.
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MS Thesis, Management