Browse

The Virtual University, Pakistan’s first University based completely on modern Information and Communication Technologies, was established by the Government as a public sector, not-for-profit institution with a clear mission: to provide extremely affordable world class education to aspiring students all over the country.

Using free-to-air satellite television broadcasts and the Internet, the Virtual University allows students to follow its rigorous programs regardless of their physical locations. It thus aims at alleviating the lack of capacity in the existing universities while simultaneously tackling the acute shortage of qualified professors in the country. By identifying the top Professors of the country, regardless of their institutional affiliations, and requesting them to develop and deliver hand-crafted courses, the Virtual University aims at providing the very best courses to not only its own students but also to students of all other universities in the country.

Impact of Capital Structure on Economic Value Added (EVA) – A Study of PSX Listed Companies

Download

Author: ABU BAKAR BIN RIZWAN


Citable URI : https://vspace.vu.edu.pk/detail.aspx?id=108

Publisher : Virtual University of Pakistan

Date Issued: 1/15/2018 12:00:00 AM


Abstract

This thesis intends to investigate the impact of capital structure on the performance of non-financial firms of Pakistan. Non-financial firms listed on Pakistan Stock Exchange are taken as sampling frame for the study. Economic value added (EVA) is used as proxy for measuring the performance of the firms. Total debt to total assets (TDTA) and long term debt to total equity (LTDTE) are used as capital structure variables. Sales to assets ratio (SAR), sales growth rate (SGR) and firm’s size (SIZE) are used as control variables in this study. Total firms listed at PSX were 450 at the time of study. By using simple random sampling formula, sample size is calculated as 137 companies. Later, the sample size came down to 134 companies due to incomplete data. The data is taken for a period of eleven years starting from 2005-06 to 2015-16. Generalized Least Square (GLS) regression is used to analyze the data. Economic value added (EVA) was found to have significant direct relationship with long term debt to total equity (LTDTE), sales to assets ratio (SAR), sales growth rate (SGR) and firm’s size (SIZE). On the hand, the impact of total debt to total assets (TDTA) on economic value added (EVA) was found to be insignificant.


URI : https://vspace.vu.edu.pk/details.aspx?id=108

Citation: Bin Rizwan, A.B.(2017). Impact of Capital Structure on Economic Value Added (EVA) – A Study of PSX Listed Companies. Virtual University of Pakistan, (Lahore, Pakistan).

Version : Final Version

Terms of Use : All the material and results are copyright of Virtual University of Pakistan

Detailed Terms :

Journal :

Files in this item

Name Size Format
Spring 2017_RTS720_ms150200368.pdf 954kb pdf


Copyright 2016 © Virtual University of Pakistan