Effect of Capital Structure on Firm���s Performance: Evidence from Cement sector Pakistan

The main objective of this study is to empirically investigate the impact of capital structure on firm performance using 25 cement companies listed on Karachi Stock Exchange. Descriptive statistics results show a poor performance by cement companies because about 64.51 percent of total assets of cement companies are financed by debt. Based on correlation results this study finds a negative relation between debt to asset and firm performance variables (GPM NPM ROA and ROE). It also indicates a positive relation between debt to equity and firm performance variables (GPM & NPM) whereas a negative relationship between debt to equity and firm performance variables (ROA & ROE).