Capital Structure Impacting Firm Performance in Context Of Pakistan’s Textile Sector

Abstract

The research has been carried out to identify the effect of capital structure regarding a company’s performance pertaining to textile industry of Pakistan. Independent variable in this study has been considered as optimum capital structure. Whereas, financial and non-financial performance are considered as dependent variables. In the provided study, the major prominence was giving on proving the momentous relationship amongst optimum capital structure and financial & nonfinancial performance in of Pakistan’s textile industry. To demonstrate this connection, a survey has been formulated and conducted through an adopted questionnaire regarding this literature, in which employees working for textile firms of Pakistan have been requested to share their experiences regarding optimum capital structure and its impact on financial and non-financial performance within their firms. Then, to identify the results on data gathered through the responses by the respondents, statistical instruments have been used. Several statistical instruments used in this study include descriptive frequencies, reliability, correlation, regression, ANOVA, and coefficients to conduct the analysis within this study. Meanwhile, correlation and regression has revealed significant positive impact of optimum capital structure on financial and non-financial performance in Pakistan’s textile industry. Based on the findings, it has been concluded that capital structure significantly impacts firm performance in textile sector of Pakistan.