| Popis: |
In today’s competitive environment firm’s capital structure is very important component in maximizing value of firms. The concept of capital structure was initially raised by Modigliani & Miller (1958), where they explained this term as the mix of deb & equity. Moreover, firm’s growth also play a significant role for boosting the value of firm. Growth in firm directs to a certain increase in firm’s turnover. This study intend to investigate the mediating effects of growth of firm on the relationship between capital structure and firm’s value. The context of this study is 36 manufacturing firms (various sectors) which are listed at Pakistan stock Exchange (PSX) covering the time period from 2015 to 2019. Thus, 36 cross sections and 5 years’ time series data included in this study. The hypotheses of this study are formulated following the suggested criteria of Barron & Kenny (1986). Furthermore, the positivist research philosophy has been taken in the study. Using SPSS v25, this study has used inferential statistics like descriptive statistics, correlation analysis and multiple regression analysis. The outcomes of the study revealed that CS has significant and positive relationship with FV listed at PSX, moreover, CS has also significant and positive relationship with GOF, and GOF has significant and positive relationship with FV. Finally, it is found that GOF mediates the relationship between CS and FV among listed manufacturing firms of Pakistan. Hence, financial managers may adjust the CS more frequently by focusing on the GOF. The study implications directs to financial managers and policy makers to adopt the study outcomes in making the optimumdegree of capital structure that emphasize to boost the value of firms. |
