Relationship between Financial Leverage and Financial Performance: Empirical Evidence of Listed Sugar Companies of Pakistan

Relationship between Financial Leverage and Financial Performance: Empirical Evidence of Listed Sugar Companies of Pakistan

Syed Shah Fasih Ur Rehman

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α University of Gujrat

Relationship between Financial Leverage and Financial Performance: Empirical Evidence of Listed Sugar Companies of Pakistan

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Abstract

Sugar Industry is the 2 nd most main industry of Pakistan after cotton. Pakistan is rich in the production of sugar, most of the production of sugar is consumed by the locals and surplus is exported. It is general concept that financial leverage and financial performance has positive relationship. The objective of the current study is to investigate the influence of financial leverage on financial and to investigate whether financial leverage has an effect on financial performance by taking evidence from listed sugar companies of Pakistan. The results of the study show the mix results. The results show the positive relationship of debt equity ratio with return on asset and sales growth, and negative relationship of debt equity ratio with earning per share, net profit margin and return on equity.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Syed Shah Fasih Ur Rehman. 2013. \u201cRelationship between Financial Leverage and Financial Performance: Empirical Evidence of Listed Sugar Companies of Pakistan\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 13 (GJMBR Volume 13 Issue C8): .

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GJMBR Volume 13 Issue C8
Pg. 33- 40

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

Financial Performance production of sugar sales growth

Submission ReceivedDecember 8, 2012
Peer Review Double Blind
Handling Editor
Accepted January 2, 2013
Published January 15, 2013

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v1.2

Issue date

August 30, 2013

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Article Matrices

Total Score: 101

Country: Pakistan

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Syed Shah Fasih Ur Rehman (PhD/Dr. count: 0)

View Count (all-time): 143

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Publish Date: 2013 08, Fri

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Total Views: 4570

Total Downloads: 2476

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