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.
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