Exploring the Effects of Firm - Specific Factors on Capital Structure: An Empirical Investigation of Pakistan’s Engineering and Textile Sector

Authors

  • AHMAD IMRAN KHAN PUTRA BUSINESS SCHOOL, UNIVERSITY OF PUTRA, MALAYSIA http://orcid.org/0000-0002-3472-6112
  • Maeen uddin PUTRA BUSINESS SCHOOL, UNIVERSITY OF PUTRA, MALAYSIA
  • Anum Afzal Khan PUTRA BUSINESS SCHOOL, UNIVERSITY OF PUTRA, MALAYSIA http://orcid.org/0000-0001-5054-6413
  • Muhammad Hashim University of Sindh, Jamshoro, Pakistan
  • Sonia Najam School of Managment ,Jiangsu University, Zhenjiang China

DOI:

https://doi.org/10.30537/sijmb.v10i1.939

Keywords:

Capital structure, hybrid securities, leverage, liquidity, policy maker, engineering, textile.

Abstract

The core purpose of the study is to estimate the power of firm specific factors (liquidity, size, tangibility, tax rate, profitability etc.) on capital structure of the firms. Furthermore, to compare the capital structure of the engineering and textile industries listed in KSE (Karachi Stock Exchange) Pakistan. Various methods such as fixed effects model and F-Test & Hausman test for the selection between fixed and random effect model. These techniques have been applied on the data to determine the impact of aforesaid variables on capital structure of the firms. For this purpose, annual data of aforesaid variables have been collected and analyzed from 2010 to 2019. The fixed effects model results indicate a significant positive and negative relationship between selected variables. This relationship is of great importance to firms and policy making perspective as these factors reflect information about (optimal) capital structure decisions and can have important implications for the engineering & textile industries.

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Author Biographies

AHMAD IMRAN KHAN, PUTRA BUSINESS SCHOOL, UNIVERSITY OF PUTRA, MALAYSIA

Ahmad Imran Khan is presently a PhD Scholar of Finance at Putra Business School, University of Putra, Malaysia. Preparatory to this he completed his MS in Business Administration with distinction from a well acclaimed University, NUML Pakistan. Previously he secured degree of Masters in Business Administration from Institute of Management Sciences, Bahauddin Zakariya University, Pakistan. He also succours the same institution for ten years as a Lecturer in the field of Finance and Management which also helps him unveil the limitless opportunities the came along the way. He attended various professional trainings on ‘Project Management’ and Decision-Making skills. He also got International certifications on ‘Competitive Strategies’ and ‘Entrepreneurship and Small Business Management’. His core interest areas in research includes Corporate Governance, Intellectual Capital Management and Stock Market Impact on Economy. It seems his never-ending quest for research will pave his way towards the top.

Anum Afzal Khan, PUTRA BUSINESS SCHOOL, UNIVERSITY OF PUTRA, MALAYSIA

Anum Afzal Khan is currently a Ph.D. scholar in the discipline of Human Resource Management at Putra Business School, University of Putra, Malaysia. Previously she was a profound student at Air University, Pakistan, where she completed her Masters degree efficaciously with a successful Research contribution. Prior to her masters degree, she was identified as a fervent student of Bachelors of Business Administration from a reputed Institute of Management Sciences, BZU, Pakistan. Throughout her academic career she was engrossed towards Corporate Social Responsibility, Philanthropy, Corporate governance, and Sustainability. She is diligent to serve in all above mentioned research scopes and always yearning for continuous growth

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Published

2023-08-16

Issue

Vol. 10 No. 1 (2023): Sukkur IBA Journal of Management and Business (SIJMB) January– June 2023

Section

Articles

License

Copyright (c) 2023 Sukkur IBA Journal of Management and Business

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