DETERMINANTS OF CAPITAL STRUCTURE OF SOUTHERN REGION CEMENT COMPANIES OF PAKISTAN LISTED ON PAKISTAN STOCK EXCHANGE

Abstract

Purpose. This tesearch s purpose is to investigate the factors and their impact on southern region cement companies of Pakistan capital structure. Methodology & Design: To test the variables in this research study procedure of data which is panel such as least square method has been used for a sample size ofsix (6) cement companies based in southern region of Pakistan registered on Pakistan stock exchange during 2009 to 2018. Findings: Indicated results show that all variables which are independent such as tangibility, liquidity, profitability, cost of debt, growth, tax and size appeared negatively to dependent variable (debt ratio). While liquidity, profitability, cost of debt and size appeared significantly in relation to debt ratio (dependent variable) and tangibility, growth, and tax appeared do not significantly related to debt ratio. Limitations: For the completion of this research it has time restrictions because for its completion the research have a period offour (4) months so the in an effective manner this research study is completed. Study’s scope is also a constraint which is faced in this study therefor in overall cement industry only southern region cement companies are selected. Information about statistical technique is another limitation therefore statistical technique selection is performed based on the understanding of ease ofuse.