The moderating role of firm size and interest rate in capital structure of the firms: selected sample from sugar sector of Pakistan

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F20%3A63525778" target="_blank" >RIV/70883521:28120/20:63525778 - isvavai.cz</a>

Result on the web

<a href="https://businessperspectives.org/journals/investment-management-and-financial-innovations/issue-366/the-moderating-role-of-firm-size-and-interest-rate-in-capital-structure-of-the-firms-selected-sample-from-sugar-sector-of-pakistan" target="_blank" >https://businessperspectives.org/journals/investment-management-and-financial-innovations/issue-366/the-moderating-role-of-firm-size-and-interest-rate-in-capital-structure-of-the-firms-selected-sample-from-sugar-sector-of-pakistan</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.21511/imfi.17(4).2020.29" target="_blank" >10.21511/imfi.17(4).2020.29</a>

Result language

angličtina

Original language name

The moderating role of firm size and interest rate in capital structure of the firms: selected sample from sugar sector of Pakistan

Original language description

The selection of financing is a top priority for businesses, particularly in short and long-term investment decisions. Mixing debt and equity leads to decisions on the financial structure for businesses. This research analyzes the moderate position of company size and the interest rate in the capital structure over six years (2013–2018) for 29 listed Pakistani enterprises operating in the sugar market. This research employed static panel analysis and dynamic panel analysis on linear and nonlinear regression methods. The capital structure included debt to capital ratio, non-current liabilities, plus current liabilities to capital as a dependent variable. Independent variables were profitability, firm size, tangibility, Non-Debt Tax Shield, liquidity, and macroeconomic variables were exchange rates and interest rates. The investigation reported that profitability, firm size, and Non-Debt Tax Shield were significant and negative, while tangibility and interest rates significantly and positively affected debt to capital ratio. This means the sugar sector has greater financial leverage to manage the funding obligations for the better performance of firms. Therefore, the outcomes revealed that the moderators have an important influence on capital structure.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Publication year

2020

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Investment Management and Financial Innovations

ISSN

1812-9358

e-ISSN

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Volume of the periodical

17

Issue of the periodical within the volume

4

Country of publishing house

UA - UKRAINE

Number of pages

15

Pages from-to

341-355

UT code for WoS article

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EID of the result in the Scopus database

2-s2.0-85097906703