عنوان انگلیسی مقاله:
The nexus between capital structure, firm-specific factors, macroeconomic factors and financial performance in the textile sector of Pakistan
ترجمه فارسی عنوان مقاله:
رابطه بین ساختار سرمایه ، عوامل خاص شرکت ، عوامل اقتصادی کلان و عملکرد مالی در بخش نساجی پاکستان
Sciencedirect - Elsevier - Heliyon, 6 (2017) e04741: doi:10:1016/j:heliyon:2020:e04741
The study aimed to analyse the role of the capital structure in the ﬁnancial performance of 90 textile ﬁrms listed in Pakistan Stock Exchange (PSX) during the period 2008–2017. The dependent variable was return on equity as a proxy for ﬁnancial performance. The independent variables were the debt to equity, total debt to total assets, asset turnover ratios, sales growth, taxation, and export growth, while the ﬁrm size was taken as a control variable. The panel regression estimation technique was employed for analysis purposes, and both cross-sectional and time- series data were collected for this study. This study used the random-effect regression estimation model based on the Hausman diagnostic test statistics. The results indicate that the capital structure debt to equity variable has a negative and signiﬁcant relationship with ﬁnancial performance while the asset turnover ratio and ﬁrm per- formance showed a negative and statistically insigniﬁcant relationship. Export growth and sales growth have a considerable positive connection with ﬁnancial performance; however, ﬁrm size has a negative and signiﬁcant impact on ﬁrm performance, in favour of our alternative research hypothesis. The remaining variables include tax payable and the total debt to total assets ratio, which have an insigniﬁcant connection with ﬁnancial performance (ROE) and validate the agency theory. With better corporate governance by putting more pressure on managers or increasing managerial ownership, institutional investors can reduce the capital, leverage risk and the overall ﬁrm capital cost that help to improve the ﬁrms ﬁnancial performance and economic stability.
Keywords: Capital structure | Taxation | Exports | Growth | Return on equity (ROE) | Asset turnover | Firm financial performance | Pakistan textile Sector | Pakistan Stock exchange (PSX) | Finance | Corporate finance | Financial economics | Economic growth | Macroeconomics | Microeconomics | Business | Organizational theory | Business management