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Home > Impact of Capital Structure on Economic Value Added Eva ? a Study of Psx Listed Companies

Impact of Capital Structure on Economic Value Added Eva ? a Study of Psx Listed Companies

Thesis Info

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Author

Abu Bakar Bin Rizwan

Institute

Virtual University of Pakistan

Institute Type

Public

City

Lahore

Province

Punjab

Country

Pakistan

Thesis Completing Year

2017

Thesis Completion Status

Completed

Subject

Software Engineering

Language

English

Link

http://vspace.vu.edu.pk/detail.aspx?id=108

Added

2021-02-17 19:49:13

Modified

2024-03-24 20:25:49

ARI ID

1676720968788

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This thesis intends to investigate the impact of capital structure on the performance of non-financial firms of Pakistan. Non-financial firms listed on Pakistan Stock Exchange are taken as sampling frame for the study. Economic value added (EVA) is used as proxy for measuring the performance of the firms. Total debt to total assets (TDTA) and long term debt to total equity (LTDTE) are used as capital structure variables. Sales to assets ratio (SAR), sales growth rate (SGR) and firm?s size (SIZE) are used as control variables in this study. Total firms listed at PSX were 450 at the time of study. By using simple random sampling formula, sample size is calculated as 137 companies. Later, the sample size came down to 134 companies due to incomplete data. The data is taken for a period of eleven years starting from 2005-06 to 2015-16. Generalized Least Square (GLS) regression is used to analyze the data. Economic value added (EVA) was found to have significant direct relationship with long term debt to total equity (LTDTE), sales to assets ratio (SAR), sales growth rate (SGR) and firm?s size (SIZE).On the hand, the impact of total debt to total assets (TDTA) on economic value added (EVA) was found to be insignificant.
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