The Relationship between Ownership Structure and Capital Structure Evidence from Chemical Sector of Pakistan

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Sadia Murtaza
Irsa Azam


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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Murtaza, S., & Azam, I. (2019). The Relationship between Ownership Structure and Capital Structure: Evidence from Chemical Sector of Pakistan. SEISENSE Journal of Management, 2(4), 51–64.


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