Abstract:

The key motivation behind this study is to determine the capital structure of fuel and energy sector firms listed in Pakistan Stock Exchange. Data of 18 firms of this industry are analyzed during the period of 2006 to 2017.for this cross section fixed effect model of regression has been employed after the Hausman Test to see the impact of four independent variables such as growth, profitability size and tangibility of assets on leverage (dependent variable). Furthermore Descriptive statistics, correlation, unit root test are also used. The result showed that growth has significant positive association with leverage where as profitability; size and tangibility of assets have negative association with leverage. It is revealed in our study that firms of fuel and energy sectors of Pakistan financed 59.5% of their assets through debt and 40.5 % with equity. Huge growth and low profitability has been observed in this industry during the research tenure.

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