Abstract:
This research study reveals the factors that elaborate the choice of optimal debt to equity
ratio for the listed companies in the Cement sector of Pakistan. The aim of this study is to
identify the relation that resides among the four explanatory variables and the leverage of
firms. These four variables include the tangibility of assets, growth, and size of assets and
profitability of the firms. The research has been performed on the 17 companies falling in
the cement sector of Pakistan and listed on Karachi slock exchange from the year 2007 to
2014.
