CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE: CASE STUDY FROM PAKISTAN PHARMACEUTICAL SECTOR

Muhammad Rehan, Suleyman Serdar Karaca and Jahanzaib Alvi
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Muhammad Rehan: Institute of Social Sciences, GaziosmanpaÅŸa University, Tokat, Turkey.
Suleyman Serdar Karaca: Department of Business Administration, GaziosmanpaÅŸa University, Tokat, Turkey.
Jahanzaib Alvi: Department of Business Administration, Iqra University, Karachi, Pakistan.

Studii Financiare (Financial Studies), 2020, vol. 24, issue 3, 66-82

Abstract: The main purpose of this research is to find out the relationship between capital structure and the firm's financial performance of the listed Pharmaceutical companies in the Pakistan Stock Exchange. A further specific objective is to find out the relation of debt-equity with gross profit, earning per share, and return on capital and return on equity. This research determines that Capital Structure is adversely linked with the profitability, it suggests that a decrease in the profitability of the organizations is due to an increase in debt capital & vice versa, further the results proclaims that capital is not dramatically significant and impacting, hence results in records that debt to equity is nothing to do with ROE, increasing or decrease in debt or equity financing would affect ROE.

Keywords: Return on Capital; Return on Equity; Debt to Equity; KSE-100 Index Pages: 66-82 (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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