DETERMINANTS OF OPTIMAL CAPITAL STRUCTURE, A CASE OF PAKISTANI COMPANIES LISTED IN KARACHI STOCK EXCHANGE

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

REHMAN K.U.; SHAH S.A.

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Seminar Paper

Paper Information

Seminar: INTERNATIONAL CONFERENCE ON INTELLECTUAL
Year:2009 | Issue:1

Download Full-Text

View:

208

Download:

Information Seminar Paper

Title

DETERMINANTS OF OPTIMAL CAPITAL STRUCTURE, A CASE OF PAKISTANI COMPANIES LISTED IN KARACHI STOCK EXCHANGE

Author(s)

REHMAN K.U. | SHAH S.A.

Keywords

LEVERAGE

OPTIMUM

FINANCING

REGRESSION

INTELLECTUAL CAPITAL

Abstract

In this research LEVERAGE is analyze against four independent variables to find the determinants of optimal capital structure, of KSE listed firms is observed for the period 2001-2006. REGRESSION analysis is applied with the assumption that there is no industry or time effect. Four explanatory variables are used, i.e. cost of equity, cost of debt, retained earnings and gross sales to evaluate their result on LEVERAGE ratio. However, using fixed effect dummy variable REGRESSION, the coefficients for a number of firms were significant. Outcomes endorse the prophecy of trade-off theory in case of cost of debt whereas the cost of equity, and retained earning variables fail to confirm to trade-off theory. Size of firm variable neither confirms to the prediction of trade-off theory nor to asymmetry of information theory. Our results also prove that size of firm is not significant for every sector of economy as it was found insignificant for textile sector.This study discovered that only two variables, Cost of equity and retained earnings was found to be significant, while cost of debt and size of firm were not found considerable. Further study concludes that after controlling for the bias in the data that creditors do not look too much towards the retained earnings of the firm rather they prefer the security of the fixed assets. Finally, the research does not find any evidence that size of firm influence the decision of LEVERAGE of the sample firms.

Cites

No record.

References

No record.

Cite

APA: Copy

REHMAN, K.U., & SHAH, S.A.. (2009). DETERMINANTS OF OPTIMAL CAPITAL STRUCTURE, A CASE OF PAKISTANI COMPANIES LISTED IN KARACHI STOCK EXCHANGE. INTERNATIONAL CONFERENCE ON INTELLECTUAL. SID. https://sid.ir/paper/903219/en

Vancouver: Copy

REHMAN K.U., SHAH S.A.. DETERMINANTS OF OPTIMAL CAPITAL STRUCTURE, A CASE OF PAKISTANI COMPANIES LISTED IN KARACHI STOCK EXCHANGE. 2009. Available from: https://sid.ir/paper/903219/en

IEEE: Copy

K.U. REHMAN, and S.A. SHAH, “DETERMINANTS OF OPTIMAL CAPITAL STRUCTURE, A CASE OF PAKISTANI COMPANIES LISTED IN KARACHI STOCK EXCHANGE,” presented at the INTERNATIONAL CONFERENCE ON INTELLECTUAL. 2009, [Online]. Available: https://sid.ir/paper/903219/en

Related Journal Papers

No record.

Related Seminar Papers

No record.

Related Plans

No record.

Recommended Workshops