The Determinant of Capital Structure. Evidence from Pakistani Cement Industry

This paper is an attempt to determine the capital structure of listed firms of the cement industry in the Pakistan stock exchange (KSE).

The main objectives of this empirical study is to forecast the relationship of dependent variable (financial leverage) with independent variables (size, tangibility, profitability, liquidity, tax rate and growth rate). The study showed a positive and significant association of firm size, tangibility and tax rate with financial leverage of the firm but in contrast to this, profitability, liquidity and growth rate showed a negative relationship with financial leverage.