Impact of Capital Structure & Firm Performance with Moderation of Product Market Competition: Evidence from Pakistan Listed Firms

Abstract

The research determines the influence of leverage and competition of products on firm performance. This study is based Pakistan companies during the period 2010-2017. Fixed and Random effect test is used to determine that impact. Panel analysis used to check the leverage and competition of goods impact on value of company. The result indicates the positive and direct relation of competition of product on firm performance. Firm sizes can also significant impact on firm value. Leverage and current ratio are not significant impact on firm value. Results also suggest that fixed effect test is more preferable than fixed effect test in our study. The moderator result tells the direct relationship between leverage and competition of goods. The result shows leverage and competition of goods significant impact on firm performance. Firm size influence significant impact on firm value but current ration is not significant impact on firm value.