Abstract:
Business in today’s world is not simple anymore; it needs an in-depth planning and attention to smoothly run the business. There are numerous reasons of complexities in executing the modern world businesses, such as internal (human resource, capital and investment) and external (market, stock, natural and artificial factors) environment of the businesses. In addition to that, there are various other factors that take part in the progress and growth of a company, such as financial, stock market and other factors etc. However, this paper impinges upon the importance of capital structure on firm’s performance. This thesis primarily focuses on the firms in Pakistan, while focusing on the importance of the type of capital structure in the performance of a firm. Similar to every other market in the world, Pakistani market has a wide range of firms and companies that are competing against each other to generate maximum revenue and maximize their profit margins. The public companies that are selected for this research include; Attock Oil Refinery Ltd, Shell Pakistan, Pakistan State Oil (PSO), DG Khan Cement, Bestway Cement and Fauji Cement. However, this research will focus on a few public sector companies to analyze their performance in view of equity and debt capital structure
