Impact of Capital Structure and Dividend Payout Policy on Firm s Financial Performance Evidence from Manufacturing Sector of Pakistan
The main objective of this study is to investigate the impact of capital structure and dividend policy on the firm financial performance in Pakistani firms. Data is collected from the annual reports of companies. Panel data analysis such as OLS has been used to examine the hypothesis. Return on Assets and Return on equity has been used to measure the firm performance. According to findings there is no relation between leverage and return on assets. There is high significant relation between short term Leverage, Long term leverage, Dividend policy and return on assets. Size does not have any impact on firm return on assets. According to second modal; only leverage has significant impact on return on equity.