Research Article | OPEN ACCESS
Do the Firm-level Variables and Human Capital Impact Capital Structure Decisions? A Study of Non-financial Firms in Pakistan
1Agha Jahanzeb, 1Norkhairul Hafiz Bajuri and 2Aisha Ghori
1Faculty of Management, Universiti Teknologi Malaysia, Malaysia
2Jinnah University for Women, Karachi, Sindh, Pakistan
Research Journal of Applied Sciences, Engineering and Technology 2014 23:2350-2355
Received: ‎September ‎22, ‎2014 | Accepted: October ‎24, ‎2014 | Published: December 20, 2014
Abstract
In this study firm’s capital structure decisions have been tried to examine theoretically and empirically. By testing the determinants of capital structure, i.e., size, tangibility, profitability, growth, non-debt tax shield, business risk and liquidity on firm’s leverage (capital structure decisions) have been tried to determine. Size, profitability, non-debt tax shield, liquidity and human capital have been found significant and negatively related to capital structure decisions. Our analysis consists of 176 non-financial Pakistani companies listed on Karachi Stock Exchange over the period of 2003-2012.
Keywords:
Corporate finance, capital structure, human capital, pecking order theory, trade-off theory,
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Competing interests
The authors have no competing interests.
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