The Impact of Financial Leverage on Firm Performance in Fuel and Energy Sector, Pakistan

Abstract

This research is finds the effect of financial leverage on firm performance of the fuel and energy sector in Pakistan. For this purpose 10 listed public limited firms out of 16 form fuel and energy sector listed at Karachi Stock Exchange (KSE). The main objective of the study is investigate the financial leverage has an effect on financial performance of the firm by taking evidence from listed fuel and energy companies of Pakistan. There is a positive relationship between the financial leverage and financial performance or not?  The main plan of this study is to examine the simplification that the firms get work with high profits may choice high leverage by using different statistical tools.

Keywords: Financial leverage, Firm Performance, Financial ratio, Fuel and Energy Sector in Pakistan

Paper type: Research paper