Abstract

This paper focuses on investigating the effect of the Liquidity, leverage, growth of firm, market price of share, size of firm and GDP on the profitability of the automobile sector of Pakistan. To proceed with this, the capital structure of 6 firms has been analyzed by adopting an econometric framework over a period of six years. We used pooled regression in order to check the reliability of our model and found that the, liquidity, market price of share, size of firm have significantly positive impact on firms profitability and DFL, growth rate of firm have significantly negative impact on firms profitability. However the study is unable to establish any significant relation between profitability of firm and the degree of operating leverage. These results might provide a useful guide to the automobiles firm’s managers in designing the strategies in a way which may boost profit.

I. Introduction
Operating leverage is a measure of the extent to which fixed operating......

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Title: Automotive Industry Analysis In Pakistan
Approximate Word Count: 7269
Approximate Pages: 30 (250 words per double-spaced page)

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