IDEAS home Printed from https://ideas.repec.org/a/aho/journl/v12y2017i1p50-58.html
   My bibliography  Save this article

Capital structure and profitability of firms in the corporate sector of Pakistan

Author

Listed:
  • Sana Tauseef
  • Heman D. Lohano

    (Institute of Business Administration, University Road, Karachi)

Abstract

We examine the impact of debt ratios on returns on equity based on panel data for 179 companies from the non-financial corporate sector of Pakistan for the years 2000 to 2015. The least squares fixed effects estimator reveals that the debt ratio has a significant positive effect on return on equity up to an optimal debt level of 40 percent beyond which it has a significant negative effect.

Suggested Citation

  • Sana Tauseef & Heman D. Lohano, 2017. "Capital structure and profitability of firms in the corporate sector of Pakistan," Business Review, School of Economics and Social Sciences, IBA Karachi, vol. 12(1), pages 50-58, January-J.
    • Handle: RePEc:aho:journl:v:12:y:2017:i:1:p:50-58
    as

    Download full text from publisher

    File URL: https://businessreview.iba.edu.pk/articles/CapitalStructureRev.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aho:journl:v:12:y:2017:i:1:p:50-58. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: sshabbar (email available below). General contact details of provider: https://edirc.repec.org/data/ibakapk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.