Abstract
This study examines the relationship between capital structure and financial performance using a broad sample of 213 non-financial firms listed on the Karachi Stock Exchange (KSE) over the period 1999- 2015. The relationship between financial performance and capital structure is estimated using fixed and random effect models. Sectorwise comparison shows that for the majority of sectors, higher shortand long-term debt has a significant negative impact on financial performance; however, magnitude of this effect varies across industries. The results suggest that in order to improve performance, companies’ management should decrease their reliance on debt finance.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
