Cross-Industry Determinants of Capital Structure: Evidence from Pakistani Data

This study investigates the cross-industry determinants of capital structure. Sample consists of firms from three main industries (textile, cement and power industry) of Pakistan. Five year data from 2005 to 2009 is collected for 199 firms out of which 149 firms from textile industry, 23 from cement industry and 27 from power industry. Leverage is taken as a dependent variable and Profitability, Size, Assets Tangibility, Growth and Non-debt tax shield are taken as independent variables. OLS regression analysis suggested that profitability and assets tangibility are two common determents which show the same results in all the three industries. All the other variables show different results across the industries. So results indicate that across the industry determinants of the capital structure are different.