Impact of Leverages on Share Price: Evidence from Cement Sector of Pakistan

Abstract

This paper examines the impact of different leverage measures on the share price of Cement Sector in Pakistan Stock Exchange. The panel-data approach of fixed effect & random effect is used during the period of 2005 to 2015. To achieve the purpose of research share price is considered as a dependent variable. The results indicate that debt ratio and degree of financial leverage is negatively determining the share price while size has significant positive impact on the share. Debt to equity ratio is insignificant in effecting share price.

Keywords: share price, leverage, debt ratio,