Abstract:
Purpose
The purpose of conducting this research paper is to measure the determining factor that effect
the Capital structure of banking industry of Pakistan for the period of 2011-2018. This
research paper also provide the examination of the model derived from the term structure of
capital decision ofthe Pakistani banking sector over the period 2011-2018.
Methodology/Approach & Design
Different theoretical aspect of Capital structure has been reviewed in several different research
papers in order to draw testable conclusion concern using the key factor of the Capital structure
of the Banking sector of Pakistan. This study is done by using the secondary data of listed
banks (Conventional banks, specialized banks, Islamic banks and foreign banks) on State bank of
Pakistan websites during 2011-2018. While, correlation and regression analysis is used in the
study in estimating the relationship between the variables.
Findings
The result of the research paper suggested Tangibility of Assets, Deposits and Growth are
positive relationship and highly correlated with Capital structure. Whereas, profitability and
Non debt taxes have significant and positive relationship with dependent variable. The finding
of the studies are supported with prediction of the several theories discuss by past researchers.
Capital structure model provides for understanding the financial behavior of the Pakistan
banking industry for the year 2011 -2018.
