{"title":"Leverage, Debt Maturity and Corporate Financial Performance: Evidence from Non-Financial Firms Listed at Pakistan Stock Exchange","authors":"","doi":"10.53819/81018102t5268","DOIUrl":null,"url":null,"abstract":"Leverage, debt maturity, and corporate financial performance are integral aspects of corporate finance for non-financial firms. The choice of leverage, which measures the use of debt in a company's capital structure, can impact profitability and financial risk. Debt maturity decisions, whether opting for short-term or long-term debt, affect liquidity management and interest rate risk. The strategic balance between leverage and debt maturity plays a pivotal role in shaping a company's overall financial health and competitiveness, making these factors essential considerations for firms listed at stock exchanges like the Pakistan Stock Exchange. The study adopted the descriptive research design. The target population was 30 Non-Financial Firms Listed at Pakistan Stock Exchange. The study did sampling of 22 respondents that were chosen from the target population of 30 Non-Financial Firms Listed at Pakistan Stock Exchange. Questionnaires were used to gather the data. In conclusion, the intricate relationships between leverage, debt maturity, and corporate financial performance among non-financial firms listed at the Pakistan Stock Exchange highlight the importance of striking a careful balance between risk and return. Effective management of leverage and debt maturity choices is crucial for optimizing financial performance, ensuring stability, and enhancing competitiveness in the dynamic landscape of the stock exchange. The study recommended that Non-financial firms listed at the Pakistan Stock Exchange should adopt a strategic approach to balance leverage and debt maturity decisions, considering industry-specific dynamics and conducting regular risk assessments. Furthermore, maintaining a proactive dialogue with regulatory bodies and staying compliant with evolving financial regulations is essential to ensure that financial practices align with regulatory expectations and maintain investor confidence in PSX-listed companies. Keywords: Leverage, Debt Maturity, Financial Performance, Pakistan","PeriodicalId":39488,"journal":{"name":"Afro-Asian Journal of Finance and Accounting","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2023-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Afro-Asian Journal of Finance and Accounting","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.53819/81018102t5268","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Economics, Econometrics and Finance","Score":null,"Total":0}
引用次数: 0
Abstract
Leverage, debt maturity, and corporate financial performance are integral aspects of corporate finance for non-financial firms. The choice of leverage, which measures the use of debt in a company's capital structure, can impact profitability and financial risk. Debt maturity decisions, whether opting for short-term or long-term debt, affect liquidity management and interest rate risk. The strategic balance between leverage and debt maturity plays a pivotal role in shaping a company's overall financial health and competitiveness, making these factors essential considerations for firms listed at stock exchanges like the Pakistan Stock Exchange. The study adopted the descriptive research design. The target population was 30 Non-Financial Firms Listed at Pakistan Stock Exchange. The study did sampling of 22 respondents that were chosen from the target population of 30 Non-Financial Firms Listed at Pakistan Stock Exchange. Questionnaires were used to gather the data. In conclusion, the intricate relationships between leverage, debt maturity, and corporate financial performance among non-financial firms listed at the Pakistan Stock Exchange highlight the importance of striking a careful balance between risk and return. Effective management of leverage and debt maturity choices is crucial for optimizing financial performance, ensuring stability, and enhancing competitiveness in the dynamic landscape of the stock exchange. The study recommended that Non-financial firms listed at the Pakistan Stock Exchange should adopt a strategic approach to balance leverage and debt maturity decisions, considering industry-specific dynamics and conducting regular risk assessments. Furthermore, maintaining a proactive dialogue with regulatory bodies and staying compliant with evolving financial regulations is essential to ensure that financial practices align with regulatory expectations and maintain investor confidence in PSX-listed companies. Keywords: Leverage, Debt Maturity, Financial Performance, Pakistan
期刊介绍：
Finance and accounting are seen as essential components for the successful implementation of market-based development policies supporting economic liberalisation in the rapidly emerging economies in Africa, the Middle-East and Asia. AAJFA aims to foster greater discussion and research of the development of the finance and accounting disciplines in these regions. A major feature of the journal will be to emphasise the implications of this development and the effects on businesses, academics and professionals. Topics covered include: -Asset pricing, corporate finance, banking; market microstructure -Behavioural and experimental finance; law and finance -Emerging economies: finance, audit committees, corporate governance -Islamic finance, accounting and auditing -Equity analysis and valuation, venture capital and IPOs -National GAAP and IASs compliance, harmonisation and strategies -Financial measurement/disclosure, and the quality of information reported -Accountability and social/ethical/environmental measurement/reporting -Cultural, political, institutional impact on financial measurement/disclosure -Accounting practices for intellectual capital and other intangible assets -Provision of non-audit services and impairment to auditor independence -Audit quality and auditor skills; internal control/auditing -Management accounting, control and /use of key performance indicators -Accounting education and professional development, accounting history -Public sector and not-for-profit accounting
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