ISSN: 2222-6990
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This study examines the determinants of capital structure in Textile industry of Pakistan on a data for the period of 2004 to 2009. Multiple regression technique is used to analyze the relationship between dependent variable (Leverage) and independent variables (Firm Size, Tangibility of Assets, Profitability, and Sales Growth). It is concluded all independent variables have significant impact on the balance of leverage. It is concludes that firm size, tangibility of assets and profitability having positive relationship with leverage. On the other hand sales growth has negative relationship with leverage. It is recommended that policy makers should focus on these determinants when making any decisions regarding capital structure.
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