THE ROLE OF BUSINESS RISK AND NON DEBT TAX SHIELDS ON CAPITAL STRUCTURE: A STUDY BASED ON CEMENT SECTOR IN PAKISTAN
Download Volume 13 Issue 2 2017 | |
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Author(s): |
Muhammad Asif Joyo
Nawaz Ahmad
Ghulam Mustafa Shaikh
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Abstract | The objective of this study is to determine the influence of Business risk and Non Tax shield on the Capital structure. This study is based on panel data of20 companies from the cement sector of Pakistan. Panel regression is applied for statistical analysis. This study concludes that business risk and non-tax shield have an insignificant effect on capital structure (debt to equity ratio), whereas interest coverage has a positive effect on the debt to equity ratio. Policy Implication- As per this study the volatility and business risk involved in the cement sector may have some serious issues if the exports are continuously declining and at the same time raising leverage funds may hurt the performance of the company. |
Keywords | Business Risk, Financial Leverage, Debt to Equity Ratio, Cement Sector Pakistan |
Year | 2017 |
Volume | 13 |
Issue | 2 |
Type | Short Report |
Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | IBT Journal of Business Studies | Publisher Name | ILMA University | Jel Classification | G12, G14, G32 | DOI | http://dx.doi.org/10.46745/ilma.jbs.2017.13.02.04 | ISSN no (E, Electronic) | 2409-6520 | ISSN no (P, Print) | 2416-8393 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Type of Review | Double Blind Peer Reviewed | Format | Paper Link | http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/13.2/4.pdf | Page | 36-49 | Reference | (2016-2017). Pakistan Economic Survey. Islamabad: Ministry of Finance Pakistan.
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