Capital Structure Determinants of KSE Listed Automobile Companies

Masnoon & Saeed (2014) "Capital Structure Determinants of KSE Listed Automobile Companies" European Scientific Journal, May edition Vol. 10, No. 13, 451-461

Posted: 4 Jun 2014

See all articles by Maryam Masnoon

Maryam Masnoon

Bahria University Karachi Campus

Abiha Saeed

Independent

Date Written: May 31, 2014

Abstract

This study aims to explore the various factors that determine the choice of financing sources for public limited companies in the automobile sector of Pakistan. The impact of firms’ profitability, liquidity, tangibility, size and earning variability on capital structure of KSE listed automobile companies is investigated. Panel data of ten out of sixteen companies for five years (2008-2012) is studied through regression analysis. It is found that capital structure has negative correlation with profitability, liquidity, size and tangibility, while it is positively correlated with earning variability. The association with profitability and liquidity is found to be statistically significant while that with size, tangibility and earning variability is reported as statistically insignificant.

Suggested Citation

Masnoon, Maryam and Saeed, Abiha, Capital Structure Determinants of KSE Listed Automobile Companies (May 31, 2014). Masnoon & Saeed (2014) "Capital Structure Determinants of KSE Listed Automobile Companies" European Scientific Journal, May edition Vol. 10, No. 13, 451-461. Available at SSRN: https://ssrn.com/abstract=2444698

Maryam Masnoon (Contact Author)

Bahria University Karachi Campus ( email )

National Stadium Road
Karachi
Pakistan

Abiha Saeed

Independent ( email )

No Address Available
United States

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