Author(s): Afkar Majeed Bhatti, Kamran Majeed, IjazurRehman, Waqas Anwar Khan
This paper aims to investigate Affect of leverage on stock returns and systematic risk in the corporate sector of Pakistan. This study determines the relation between leverage and systematic risk. The data was collected from eight industries that are Cotton, Engineering, Chemicals, Sugar & Allied, Cement, Fuel & Energy & transport & Communications. We find out that high level of leverage creating a high level of systematic risk, leading to high volatility in the stock prices.