In this paper we examined the factors that are important for the determinants of the corporate de... more In this paper we examined the factors that are important for the determinants of the corporate debts structure. For that purpose we have chosen two most important sectors from an emerging economy like Pakistan (Oil and gas and textile sector) from KSE-100 index. We have applied the panel data analysis such as the common effect model as well as fixed-random effect models. The Hausman test recommends the random effect model. The results suggests that age of the corporations does not have any impact on its borrowing while the economic resources measured as total assets and fixed assets ratio revealed the positive significant relation with the debt. On the basis of the analysis it might be possible to conclude that the size of the firm does matter in the decision of capital structure specifically in borrowing decisions.
In this paper we examined the factors that are important for the determinants of the corporate de... more In this paper we examined the factors that are important for the determinants of the corporate debts structure. For that purpose we have chosen two most important sectors from an emerging economy like Pakistan (Oil and gas and textile sector) from KSE-100 index. We have applied the panel data analysis such as the common effect model as well as fixed-random effect models. The Hausman test recommends the random effect model. The results suggests that age of the corporations does not have any impact on its borrowing while the economic resources measured as total assets and fixed assets ratio revealed the positive significant relation with the debt. On the basis of the analysis it might be possible to conclude that the size of the firm does matter in the decision of capital structure specifically in borrowing decisions.
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