Abstract:
Purpose
The aim of this research is to observe the determinants of capital structure in the non-
financial sector (cement sector), which are listed in the Pakistan Stock Exchange. The
research is basically to discover the impacts of the determinants on capital structure.
Methodology & Design
The research emphases on 16 companies out of 21 for the period of 5 years (2013-2017),
which belong to the Cement sector of Pakistan. The data is collected from the company’s
financial statements in a direction to determine the capital structure. The research is
Quantitative nature and the data is gathered mainly from the secondary sources.
Findings
The research findings showed that Asset Tangibility and liquidity have a negative statistical
significant impact on leverage whereas the profitability, firm growth and size have a
statistical insignificant impact on firm’s capital structure.
Recommendations
The outcomes of this research help to improve the capital structure determinant’s knowledge
and also helps Company to take effective decisions related to capital structure. Moreover,
this research helps in a better understanding of financial decision maker and also consider it
into a better way to manage the cement company’s capital structure.
