Work

Static Trade-off theory or Pecking order theory which one suits best to the financial sector. Evidence from Pakistan.

Year: 2013

Type: article

Abstract: This research is a contribution towards understanding the financial behavior of leasing sector of Pakistan for the period of 2001-2010.It is an attempt to investigate the key factors that influence the capital structure of leasing sector of Pakistan.Financial Leverage is taken as the dependent variable.Whereas, Size of Firm, Capital intensity; Liquidity, Profitability and Tangibility of assets are taken as independent variables.Empirically it has been found that size of assets has a negative and significant impact on leverage.It has also been found that Liquidity, Tangibility, profitability and capital intensity do not significantly influence Leverage.Hence, it is concluded that leasing sector of Pakistan is following Pecking Order Theory in terms of the Size of Firm, Tangibility, liquidity, profitability and capital intensity.

Source: Journals & Books Hosting (International Knowledge Sharing Platform)

Authors: Sehrish Butt, Zeeshan Khan, Bilal Nafees

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1692540282

FWCI: 7.76

Cites: 20

Cited by: 20

Related to: 10