Abstract:
The thesis is concerned to the identification of any
capital structure being used by the firms in the energy
sector of Pakistan. It identifies the determinants of the
financing mix which affect the choice of funding in
Pakistan industry. The thesis tests the financial mixture
of various listed firms in the energy sector of Pakistan.
The analysis was carried on 23 listed firms of the
industry. The duration of analysis carried on was 11 years
from year 1998- 2008. Various regression models are used
for the analysis of the raw data of 23 firms over 11 years.
From the analysis we conclude that there are various
determinants which are affecting the choice of funding in
the industry. These determinants are Total non-cash
expenses, total assets and growth rate. The regression was
carried on different time series as well. Years 2001-2003
showed significant relationship with the base year and thus
affected the choice of funding of the industry.The
theoretical framework is divided in two parts, including
the review of the energy industry of Pakistan. This review
includes latest facts and figures of the industry. Second
part of the theoretical framework includes the review of
the capital structure theories. Various theories are
reviewed in the framework. The methodology consists of two
paths adopted for the achievement of result. Primarily
focused method was the regression analysis. In order to
determine the accuracy of results various regression
methods are adopted. Second method used for methodology is
the graphical approach. Graphs of various companies are
constructed over the periods of time in order to achieve
time specific results.
