IMPACT OF CAPITAL STRUCTURE ON FIRM'S PERFORMANCE: AN EMPIRICAL ANALYSIS ON FERTILIZER INDUSTRY OF PAKISTAN

Abstract

The purpose of our study is to analyze the fertilizer industry in Pakistan and draw conclusions about the relationship between capital structure and business performance. We were able to achieve this by compiling information from the online platforms of four respected Pakistani fertilizer manufacturers. These businesses are: A Division of Engro Fertilizer Limited Company, Fauji Fertilizer Company Limited, Fatima Fertilizer Company Limited Company, Dawood Hercules Fertilizer Company Limited. We used Linear Regression Analysis that was executed in Microsoft Excel, to analyze the data. Capital Framework and Firm Performance do not have a strong correlation, according to our data. This finding aligns with previous research reports. The results of our research can give valuable insights for the Industry to develop effective strategies and make informed decisions in order to enhance their company's productivity. The scope of our analysis was limited to the fertilizer sector in Pakistan. Our study's sample comprised just four enterprises, and we gathered information from the past four years. Others may have the opportunity to replicate our study in additional sectors and countries, using larger research samples.

Keywords:Capital structure, Firm Performance, Fertilizer Industry Pakistan, Debt-Equity, Firm Sustainability