Determinants of capital structure. A study on the cement sector of Pakistan

Project Report from the year 2014 in the subject Economics - Finance, grade: A-, , course: Adavance research methodology, language: English, abstract: The decisions relating to the capital structure have been one of the most important decisions that have to be taken by the financial managers in any organization. The cement sector of Pakistan plays a vital role in economic development. Hence the importance of decisions pertaining to its capital structure can¿t be denied. This study investigates the effect of profitability, tangibility, size and liquidity on capital structure decisions of the listed companies in Karachi stock exchange of cement sector in Pakistan.

This research study provides the information that would help the management of cement industry to make better decisions related to the capital structure. Its provides a deep insight of an optimal capital structure for the cement industry. Which will then support in maximization of the share value of firms on the one side and the minimization of cost of capital on the other side, and overall it would have a significant effect on the firm¿s profitability which is the main objective of any organization. The variables include leverage, profitability, liquidity, Size, and tangibility.