Abstract:
This paper studies the effects of change in capital structure
and risk on returns of different companies working under the
oil and gas sector in Pakistan. A sample of five companies
were selected for this research. All companies were listed on
Pakistan stock exchange. Capital structure is measured by the
debt to equity ratio. Risk is being measured through beta,
standard deviation and also coefficient of variance. This
study is basically based on the data which was historical.
Data showed the time period of five year from 2011-2015. This
study includes the comparison of mean returns of all selected
companies with risk factor and D/E ratio yearly. We got the
results that mean stock returns of all companies showed an
increase with the increase in the risk factor. Risk was very
high in 2013 and return was also high among all years. D/E was
very low among all years and its returns showed highest
returns for this year than other years.
