Textile giants in Pakistan rely on debt for long-term financing.
The study looked at factors influencing how textile companies in Pakistan decide on their capital structure. They analyzed data from five companies over a ten-year period. The results showed that profitability is linked to lower debt, while tangible assets are linked to higher debt. Larger companies tend to use more debt for long-term financing compared to smaller ones. Overall, firm size, growth, and return on equity all play a role in how companies choose to finance their operations.