Impact of Capital Structure on Firm Performance: Moderating Role of International Financial Reporting Standards
Author: Shahzad Khan

Accounting analysis is vital to a company’s operations. Accounting principles and convention is considered when preparing financial reports of the companies. This thesis is being undertaken to demonstrate the effect of capital structure on firm performance. By using IFRS as a turning point, the impact between capital structure and company performance is empirically tested in this study. The non-financial firms included in the study were listed on the Pakistan Stock Exchange (PSX) between 2001 and 2019. In this study, balanced panel data was used. The result of the panel least square model shows that there is a positive significant relationship between capital structure and return on assets (ROA) whereas there is a negative significant relationship between capital structure and log of stock prices (LNP). This study also found a significant and positive impact of IFRS on firm performance. Based on the current analysis, Pakistan’s non-financial business performance has increased as a result of the implementation of the International Financial Reporting Standards (IFRS). However, the International Financial Reporting Standards (IFRS) have a positive and major impact on the relationship between capital structure and firm performance when the proxy of firm performance is LNP (log of stock prices). In both models, the control variables dividend and liquidity have a major and positive impact on firm performance, while size affects significantly negatively in model 1 and positively in model 2. This study has proved that accounting information has the most significant impact on firm performance. Supervisor:- Dr. Nadeem Ahmed Khan Co-Supervisor:- Dr. Jaleel Ahmed Malik

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Supervisor: Nadeem Ahmed Khan
Cosupervisor: Jalil Ahmed Malik

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