Abstract:
This research examines the influence of board composition and
financing choices by which we can create maximum shareholder
wealth in different textile firms. Top 10 textile firms are
being considered as a sample for this research for the time
period of 2011 - 2015. In this study we measure the financing
decision by using the debt ratio and the board composition is
being measure by board size of different firms. Some firms
find that there is a positive relationship between the debt
and profitability. As there are debt to equity ratio and
second they use equity to market ratio. For having a better
thoughtful view earlier in literature there is discussion
about financing choice and board composition have thoroughly
reviewed in textile firms of Pakistan. Ordinary least square
regression model examines the quantity of debt in the capital
structure is very much obvious element in knowing the
shareholders return and Hausman test determine about the best
model. In study the small and medium board size has been
consider positive thing to make the more profit for the
shareholders. Firm’s use more equity rather than the debt are
positively correlated and have positive impact on the firm
performance as well as it help in shareholders wealth
maximization.
