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Abstract
Purpose: The present study investigates the impact of the financial leverage on the investment decisions of the listed companies in KSE-30 Index of Pakistan. It identifies the most important factor that influences investment decision of the company and which causes the bankruptcy of Pakistani listed firms. Methodology: The study uses descriptive statistics, correlation analysis and pooled ordinary least square regression model for the analysis of 30 (financial & non-financial) companies of Pakistan. Results: The empirical findings of the study reported that the financial leverage has a negative and significant impact on the investment decisions. Policy Implications: The outcomes of the study help the strategic management to make financing decisions about leverage whether to take long term debt or not.
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