Effect of Profitability and Financial Leverage on Capita Structure in Pakistan Textile Firms
- Corresponding Author:
- Hassan Shahid
MBA, University of Gujrat City Campus
Tel: 00923055088105, 3006248838
E-mail: [email protected]
Received Date: March 02, 2016; Accepted Date: March 16, 2016; Published Date: March 23, 2016
Citation: Hussain M, Shahid H, Akmal M (2016) Effect of Profitability and Financial Leverage on Capita Structure in Pakistan Textile Firms. Arabian J Bus Manag Review 6:222.
Copyright: © 2016 Hussain M, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
This study concentration the effect of profitability and financial leverage on capital structure in Pakistan textile firms. This study is based on selected 10 listed KSE textile firms the data for the period 2009 to 2014. Estimated regression model and correlation between the financial leverage and profitability on capital structure. According to our finding there is negative relationship between capital structure and profitability and positive relationship between capital structure and financial leverage if the financial leverage is increase the profitability is decrease and vice versa there have negative correlation.