Abstract:
The research is based on capital structure decisions in the oil and gas sector ofPakistan.
The research is basically carried out in order to determine the importance of capital
structure and explore their importance in a company.
The research focuses on 8 companies belong to the Oil and Gas sector ofPakistan. The data
is gathered from the financial statements of the company’s sin order to determine their
capital structure. The research is Descriptive in nature and the data is gathered mainly from
the secondary sources.
For the purpose of analysis a regression model is used to define the relationship among the
variables. The variables ofthe research are Tangibility, Profitability, Growth and Size. On
the other hand, 10 scenarios are discussed which helps in determining the best option. The
analysis suggests that size of a firm is directly proportional to its profitability.
The findings ofthe research are that most ofthe oil and gas companies feature Debt as the
best option. This is because the investment requirements for this business are too high and
on the other hand the most important reason is that these companies do not want to dilute
their ownership
