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Determinants of Capital Structure: An Age Wise Analysis from Non-Financial Sector of Pakistan

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  • Ahmed Arif
  • Bilal Aslam

Abstract

This study examines various determinants of capital structure in non-financial sector of Pakistan. Data are retrieved from the balance sheets, income statements and notes of 214 companies from non-financial sector in Pakistan. These companies were selected through random sampling. The data has been analysed through regression analysis (using the Random Effect Model) in order to evaluate the effects of various determinants. This study has evaluated the data of the organization lying in different age categories to evaluate either there is change in different determinants with maturity of the firm. The study finds that non-debt tax shield and liquidity are two most influential determinants of capital structure. However, there is a variation observed with respect to age categories.

Suggested Citation

  • Ahmed Arif & Bilal Aslam, 2014. "Determinants of Capital Structure: An Age Wise Analysis from Non-Financial Sector of Pakistan," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 3(2), pages 76-89.
    • Handle: RePEc:rss:jnljef:v3i2p4
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