Impact of Specific Factors on Capital Structure Decisions: A Case of Pakistan Motor Vehicles, Trailer and Auto Parts Industry (2004-2014)

Authors

  • Abdul Aziz
  • Dr. Imamuddin Khoso
  • Dr.Noor Muhammad Jamali

Keywords:

Factors, Capital Structure Decisions, Random Effect, Fixed Effect, Pooled OLS, Significant, Consideration

Abstract

The purpose of this paper is to identify specific factors of capital structure in the motor vehicle industry. Capital structure is the combination of debt and equity. Thus, the firms have to decide as what portion of equity and debt should be included in capital structure. This paper also argues that profitability, asset tangibility, financial and business risks have significant and negative impact on capital structure decisions. Nevertheless, liquidity and tax shield have positive impact and capital structure decisions.

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Published

2015-12-25

Issue

Vol. 49 No. 2 (2015): Grassroots

Section

Articles

License

The Editor and the Sub-Editor share no responsibility regarding the views and opinions expressed by the authors. Articles published in the Biannual Research Journal Grassroots can be quoted or reproduced after acknowledgment.

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