Abstract
The primary purpose of this research is to examine the impact of capital structure on the performance of microfinance institutions (MFIs) in Pakistan. To evaluate the financial performance of firms, current study uses secondary dataset and panel regression technique Capital structure is the ratio among various sources of finance, and in this study, it is observed that an increase in the ratio of debt finance reduces the financial performance of the MFIs in Pakistan. In this context, this research evaluates the capital structure and hence provides an insight into the issues with the performance of such institutions regarding the capital structure.
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