The Lahore Journal
of Business

The Lahore Journal
of Business

Lahore Journal of Business

(HEC recognized journal in “Y” category)

The Lahore Journal of Business is aimed at providing a specialized forum for dissemination of qualitative and quantitative research in various areas of business administration. The LJB invites researchers, policy makers and analysts to submit original theoretical and empirical papers that explore and contribute to the understanding of various areas in the business domain. The Journal aims at bringing together state-of-art research findings, particularly from emerging markets, in various business disciplines including (but not limited to) accounting, banking, management, marketing, finance, investments, human resource management and organizational behavior.

Muhammad Mounas Samim, Shakeel Iqbal Awan and Basheer Ahmad

This study explores firms’ leverage behavior and speed of adjustment in the context of selected performance indicators in Pakistan’s manufacturing industry. Leverage behavior is predicted using ordinary least squares, based on four performance indicators: profitability, tangibility, size and growth. The speed of adjustment of leverage is estimated using a general linear model and partial adjustment model. We find that profitability, tangibility and growth play a significant role in leverage behavior and the speed of adjustment, although both differ across sectors. Moreover, exponential leverage adjustment appears to be better than linear leverage adjustment.