Does Finincial Leverage Influence Investment Decisions? Empirical Evidence From Kse-30 Index of Pakistan
Purpose: The present study investigates the impact of the financial leverage on the investment decisions of the listed companies on KSE-30 index in Pakistan. It identifies the most important factor that influence on investment decision of company and which cause the bankruptcy of Pakistani listed companies. Methodology: The study use three regression techniques namely: pooled ordinary least square, random effects and fixed effects model for analysis of 30 (financial & non-financial) companies of Pakistan. Results: The empirical findings of the study reported that the leverage has a directly influence on the investment decisions. Policy Implications: The outcomes of the study help the strategic management to make financing decisions about leverage whether to take long term debt or not.