LEVERAGE FINANCING AND FINANCIAL COMPETITIVENESS OF A FIRM: A STUDY OF LISTED COMPANIES IN PAKISTAN

Year 2025, Volume: 14 Issue: 2 , 158 - 176 , 31.12.2025

Muhammad Ayub Mehar

https://izlik.org/JA72ZC79EJ

Abstract

Purpose- The core purpose of this study explores the nexus of financial competitiveness, the liquidity position of a firm, and leverage financing.
Methodology- This analysis is based on 7 years of data from 398 listed companies in Pakistan, while panel least square (PLS) techniques have
been applied to estimate the parameters.
Findings- The financial position of a firm is also affected by macroeconomic indicators. The intangible assets and cost of debt are also important
determinants. It was noted that the return on equity in small and medium enterprises is higher than in large-scale industrial units despite very
low return on assets in small and medium enterprises.
Conclusions- The study concludes that the size of a firm, debt financing, and liquidity position are important, significant, and robust determinants
of financial competitiveness. The real source of this differentiation is the magnitudes of leverage financing and liquidity position of enterprises

Keywords

Dividend policy , intangible assets , leverage financing , SMEs , Pakistan

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