Firm and Macroeconomic Determinants of Debt: Pakistan Evidence. (27th January 2015)

• Record Type: Journal Article
• Authors: Memon, Pervaiz Ahmed; Rus, Rohani Bt Md; Ghazali, Zahiruddin B.
• Is Part Of: Procedia--social and behavioral sciences. Volume 172(2015)
• Page Start: 200
• Page End: 207
• Publication Date: 2015-01-27
• Subjects: Capital Structure -- Fixed Effect Regression -- Macroeconomic Factors -- Panel data -- Pooled OLS; Social sciences -- Periodicals; Social sciences -- Congresses; Arts -- Periodicals; Arts -- Congresses; Humanities -- Periodicals; Humanities -- Congresses; 300
• DOI: 10.1016/j.sbspro.2015.01.355
• Languages: English
• ISSNs: 1877-0428

Abstract

Abstract: This study investigates the role of firm specific factors, macroeconomic factors, and firms' heterogeneity in determining the debt levels of non-financial listed firms of Pakistan. Study implies static panel data modeling using pooled OLS and fixed effect regression as estimation techniques, with two different proxies of debt. Profitability, tangibility, and size of the firm appear to affect debt level significantly across different proxies and different estimation techniques. Interest rate and inflation are significant determinants of debt in fixed effect estimation. Study also confirms the existence of firm specific influence on debt.