Abstract:
Purpose: The aim of this study tends to determine the effect of (CS) Capital Structure and
Corporate Governance on the firm performance. This research is based on the oil and gas
companies working in Pakistan. The research problem highlighted in this study is related to
examining the (CG) corporate governance framework which is not well researched in
Pakistan. However, capital structure has been researched and studied but, specifically
variables like STD & LTD along with Board Size and shareholding aren’t studied singly.
This research has been conducted to answer the research question: What are the effect seen
from the structure of capital and corporate governance on the financial performance of
Pakistan’s oil and gas sector?
Methodology & Design: The methodology for this study is quantitative while the data has
been gathered from secondary sources. The research design for this study is explanatory
while, the approach is deductive. The analysis is conducted using OLS regression, Hausman
test and Descriptive statistics.
Findings: The findings from our research shows that, all the variables (Board Size, number
of shareholders, long term debt and short-term debt) can explain return on assets of oil and
gas sector of Pakistan up to 84.3 percent and 52 percent while F-statistics found that all the
independent variables significantly predict dependent variable.
