Article | Open Access | Published: 1 December 2017
The Role of Business Risk and Non Debt Tax Shields on Capital Structure: A study based on Cement Sector in Pakistan
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Abstract:
Objective: The objective of this study is to determine the influence of Business risk and Non Tax shield on Capital structure. Methodology: This study is based on panel data of20 companies from the cement sector of Pakistan. Panel regression is applied for statistical analysis. Conclusion: This study concludes that business risk and non-tax shield has insignificant effect on capital structure (debt to equity ratio), whereas the interest coverage has positive effect on 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 is continuously decline and at same time raising leverage funds may hurt the performance of company
Keywords:
Business Risk, Financial Leverage, Debt to Equity Ratio, Cement Sector Pakistan
Publisher:
ILMA UNIVERSITY
Published:
1 December 2017
Issue:
Issue 2 : Volume 13
E-ISSN:
2409-6520
P-ISSN:
2414-8393
DOI:
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This is an open access article distributed under the terms of the Creative Commons Attribution CC BY 4.0 license, which permits any use, distribution, and reproduction of the work without further permission provided the original author(s) and source are credited.