Back to Search Start Over

Analyzing Significance Of Financial Leverage On Financial Performance In Manufacturing Sector Of Pakistan.

Authors :
Shaikh, Ahsan-ul Haque
Raza, Ali
Balal, Saddam Ali
Abbasi, Abdul Rehman
Delioglu, Nurullah
Shaikh, Hina
Source :
Webology. 2022, Vol. 19 Issue 3, p3465-3478. 14p.
Publication Year :
2022

Abstract

This present research is conducted to probe the impact of company’s’ Financial-Leverage on its Performance, the research-data pursued and collected for listed manufacturing sector of Pakistan from State Bank of Pakistan via Financial-Statements analysis. Time- series-data is collected from 2009-2019. The research is based upon Ratio and Return on Assets, Return on Equity are as Independent-Variable and Net-Profit margin are Dependent-Variable, the research is mechanized by applying the Regression-Model by using SPSS. Manufacturing sector is performing a crucial function in the Developing and Developed-Economies. It offered maintain for EconomicDevelopment of country by depicting encouraging trends for growth towards the sector, helping as a control for the growth of firm’s various working areas like; textile, cement and iron. It offers extensive contribution for production, trade and service. Generally, perceived the financial leverage is helpful to boost up the Financial-Performance of the Company. The study is aimed at checking the Hypothesis and to comprehend the contact of Financial-Leverage on the Firm Financial outcomes of the manufacturing sector of Pakistan. The study’s core objective is to observe that the entities acquire work with high profits may be leads to choice High-Leverage by using different statistical techniques and tools. The study highlights Financial-Leverage positively affects the company Financial Performance. By affirming the alternate hypothesis H1 and Ho is rejected. Further, analysis substantiates High-Profit earning entities make sure of feasible liquidity situation s to acquire significant Financial-Performance of entity. This orientation has significant impact on the manufacturing sector in Pakistan in Financial- Leverage on its sustainability and significance. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
1735188X
Volume :
19
Issue :
3
Database :
Academic Search Index
Journal :
Webology
Publication Type :
Academic Journal
Accession number :
172018388