Abstract:
This study examines the determinants of capital structure in listed firms of Oil and gas
industry of Pakistan. A total of five firms were taken for study from the period of 2005
to 2014. The study explains the relationship between dependant variable i.e. leverage
and independent variables i.e. Asset tangibility, Profitability and Growth. Descriptive
analysis, correlation and regression analysis was conducted on the data available to
know the relationship of these variable in the Oil and Gas industry. The study
concluded that the independent variables have a significant effect on debt. The study
shows that profitability and growth are negatively correlated to financial leverage;
whereas, tangibility is positively correlated to financial leverage.
