Volume 13 Issue 2 2017


Muhammad Asif Joyo
M.phil Scholar at Institute of Business Management-IoBM.

Nawaz Ahmad
Assistant Professor at Institute of Business Management-IoBM.

Ghulam Mustafa Shaikh
Research Associate at Ilma University.

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
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 PDF
Paper Link
Page 36-49
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