Volume 14, Issue 1, January 2016, Pages 210–217
Muhammad Asif Khan1, Mushtaq A. Sajid2, Mhammad Arfaq Waseem3, and Mhammad Waseem Shehzad4
1 Department of Commerce, Faculty of Commerce, University of Management Sciences and Information Technology, Kotli, Azad Jammu & Kashmir, Pakistan
2 Professor & Dean, Faculty of Commerce, University of Management Sciences and Information Technology, Kotli, Azad Jammu & Kashmir, Pakistan
3 Department of Commerce, Faculty of Commerce, University of Management Sciences and Information Technology, Kotli, Azad Jammu & Kashmir, Pakistan
4 Department of Economics, Faculty of Social Sciences and Humanities, University of Management Sciences and Information Technology, Kotli, Azad Jammu & Kashmir, Pakistan
Original language: English
Copyright © 2016 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The optimal amalgam of debt and equity subject to various crucial considerations is potentially influenced by the availability of the financial sources that upshot corporate financial performance. The study accounts for the effect capital structure composition (CSC) implies upon corporate financial performance potential (CFPP) of 151 textile companies listed at Karachi Stock Exchange Pakistan using time series data during 2008-2014 compiled from the annual reports of respective concerns. E-Views has been used as analytical tool to regress the secondary data and empirical findings reveal that capital structure composition has adverse impact upon corporate financial performance of textile industry of Pakistan because of high fixed financial charges. Policy makers and management are suggested to take financing decision with utmost care and reliance upon equity financing would be more lucrative rather debt financing.
Author Keywords: Capital Structure Composition, Corporate Financial Performance Potential, Return on Assets, Return on Capital Employed, Return on Equity.
Muhammad Asif Khan1, Mushtaq A. Sajid2, Mhammad Arfaq Waseem3, and Mhammad Waseem Shehzad4
1 Department of Commerce, Faculty of Commerce, University of Management Sciences and Information Technology, Kotli, Azad Jammu & Kashmir, Pakistan
2 Professor & Dean, Faculty of Commerce, University of Management Sciences and Information Technology, Kotli, Azad Jammu & Kashmir, Pakistan
3 Department of Commerce, Faculty of Commerce, University of Management Sciences and Information Technology, Kotli, Azad Jammu & Kashmir, Pakistan
4 Department of Economics, Faculty of Social Sciences and Humanities, University of Management Sciences and Information Technology, Kotli, Azad Jammu & Kashmir, Pakistan
Original language: English
Copyright © 2016 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
The optimal amalgam of debt and equity subject to various crucial considerations is potentially influenced by the availability of the financial sources that upshot corporate financial performance. The study accounts for the effect capital structure composition (CSC) implies upon corporate financial performance potential (CFPP) of 151 textile companies listed at Karachi Stock Exchange Pakistan using time series data during 2008-2014 compiled from the annual reports of respective concerns. E-Views has been used as analytical tool to regress the secondary data and empirical findings reveal that capital structure composition has adverse impact upon corporate financial performance of textile industry of Pakistan because of high fixed financial charges. Policy makers and management are suggested to take financing decision with utmost care and reliance upon equity financing would be more lucrative rather debt financing.
Author Keywords: Capital Structure Composition, Corporate Financial Performance Potential, Return on Assets, Return on Capital Employed, Return on Equity.
How to Cite this Article
Muhammad Asif Khan, Mushtaq A. Sajid, Mhammad Arfaq Waseem, and Mhammad Waseem Shehzad, “Capital Structure Composition Demeanour towards Corporate Financial Performance Potential,” International Journal of Innovation and Applied Studies, vol. 14, no. 1, pp. 210–217, January 2016.
