Abstract:
This research aims to analyze the effect of determinants that impact capital structure of small and large non-financial firms. This study uses Random, OLS and GMM model to explain the relationship. For this a sample of 200 nonfinancial firms for 10 years from 2010 to 2019 will be taken. The results would be suggesting that various firm characteristics play a vital role in determining capital structure of a firm. Firm profitability, Liquidity and Tangibility have a negative relationship significantly, while Inflation and Firm Size showed positive relationship with leverage ratio.
