Assessing the Determinants of Capital Structure: Evidence from Pakistani Microfinance Institutions

Authors

  • Arman Khan
  • Muhammad Saleem
  • Abdul Bari
  • Aiman Israr

Keywords:

Efficiency, Productivity, Size, Profitability, Capital structure, MFI’s, NGO’s, Stationary, Regression

Abstract

It is aimed to examine the impact of efficiency, productivity, size and profitability of micro finance institutions on capital structure. Thus, micro finance NGO’s are selected to investigated. Seven NGO’s are selected for analysis i-e KASHF, SAFCO, DAMEN, CSC, AKHUWAT, OPP, ASSASAH sequentially. The data is obtained from micro finance network of Pakistan and comprises on 09 years from 2006-2014. The data comprises on annual financial statements. So the data nature is panel. For the reason, unit root test is applied to check data stationary because institutes are intensively and uniformly working on similar objectives. And no data stationary is found that suggests for regression. Therefore, linear regression is deployed to check the impact and it is concluded that productivity has insignificant impact on capital structure but other i-e size, profitability and efficiency are affecting significantly.

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Published

2020-06-30

How to Cite

Khan, A., Saleem, M. ., Bari, A. ., & Israr, A. (2020). Assessing the Determinants of Capital Structure: Evidence from Pakistani Microfinance Institutions. Pakistan Journal of Social Sciences, 40(2), 1231-1240. Retrieved from http://pjss.bzu.edu.pk/index.php/pjss/article/view/926

Issue

Vol. 40 No. 2 (2020): Pakistan Journal of Social Science

Section

Articles