Impact of Capital Investments on Firm's Capital Structure: Evidence from Cement Sector of Pakistan

The study is carried out to see how capital investments impacts the capital structure of the firms. We use the panel data methods and data that are taken from the cement sector companies listed at Pakistan Stock Exchange. The results give us direction that firms' tangible investment activities can positively related to the debt level of the firm. The debt providers to the firm have an eye on firm activities and they prefer finance tangible investments to secure their money. The random effect model is most appropriate for the study as Hausmen test is indicative to use it. The study scope can be extended and more sectors can be included to perform this study to see how different investment activities have an impact on the capital structure of a firm.