Does Ownership Structure Impact on Capital Structure?

Abstract

Taking the 2011-2015 public listed financial and non-financial firms in Pakistan as the sample of the study, this paper scrutinizes the sway of ownership structure on capital structure. The multivariate regression analysis technique is used because the dependent variable is influenced by the more than one independent variable. The final results reveal that capital structure decision is positively associated with the board of director size and non-executive director’s percentage while it is negatively related with the percentage managerial shareholding.

Keywords

• ownership structure
• capital structure
• board of director
• non-executive director