The Relationship between Ownership Structure and Capital Structure Evidence from Chemical Sector of Pakistan
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Abstract
Objective – The main objective of this study is to measure the relationship between ownership structure and capital structure by using the chemical sector of Pakistan.
Design – This study is used the panel data and retrieved from the annual reports of the chemical sector of Pakistan for the time period of 2012 to 2017.
Findings – The finding the statistical analysis shows that ownership structure has a significant positive relationship on capital structure. Which mitigate the agency conflicts among managers and shareholders, because the majority of the shareholders would like to have a higher level of debt over equity financing.
Policy Implications – The findings of this study also can be helpful to the policymakers, investors and financial institution in designing ownership structures and financing decisions for firms.
Originality – This is the first study that examined the relationship between ownership structure and capital structure in the context of the chemical sector of Pakistan.
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Copyright (c) 2019 Sadia Murtaza, Irsa Azam
This work is licensed under a Creative Commons Attribution 4.0 International License.
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