Abstract:
Capital structure is one of the most controversial topics in the world of corporate finance.
This study attempts to identify the factors affecting the capital structure and to what extent
they impact on the capital structure. To analyze this, the researchers selected a sample of 100
listed companies in CSE for 6 years from 2013 to 2018 using stratified random sampling
technique. The determinants of leverage represented by the variables namely Profitability,
Tangibility, Size, Liquidity and Sales Growth Rate were independent variables. In addition,
Total Debt to Total Assets was employed as dependent variable. The study was analyzed
using the statistical tools Descriptive Statistics, Correlation Analysis, Pooled Ordinary Least
Square Regression, Fixed Effect and Random Effect. The findings reflected Profitability and
Liquidity have significant negative impact on leverage at the same time Tangibility, Firm
Size, Sales Growth Rate have significant positive impact on leverage.
