Capital Structure and Its Factors: Empirical Evidence from Pakistan’s Pharmaceutical Firms

Abstract

The purpose of this study is to examine the influence of non-financial sectors such as the pharmacy and chemical industry on their financial performance in Pakistan. The sample contains non-financial firms with data about 43 companies of five years. The two steps GMM in directive to evaluate the coefficients and other statistics of interest. The core outcomes, additional than half of the cross-section heterogeneity of the leverage ratio comes from variations. The profitability is the only variable that is practically reliable, in scale, sign, and significance, through the changed measures of leverage. In the course of this study future scholars require to evaluate the chemical and pharmacy zone with additional sectors at the Pakistan Stock Exchange (PSX) and State Bank of Pakistan (SBP).