The Impact of Global Financial Crisis on Capital Structure: Analyzing the Severity of Its Impact on Engineering SMEs in Pakistan?

Authors

  • Sarfaraz Ahmed Bhutto Assistant Professor, National University of Computer and Emerging Sciences, Karachi, Pakistan
  • Nazia Nazeer Associate Professor, National University of Computer and Emerging Sciences, Karachi, Pakistan
  • Kewal Talreja Assistant Professor, Shaheed Zulfiqar Ali Bhutto, University of Law, Karachi, Pakistan

DOI:

https://doi.org/10.63278/1411

Keywords:

Financial Crisis, Capital Structure, SMEs, Engineering, Inferential Statistics

Abstract

The current study examines the impact of global financial crises on the capital structure of engineering small and medium enterprises in Pakistan. The study takes GDP as an indicator of financial crises and total debt to total asset ratio, long-term debt to total debt ratio and long-term debt to total asset ratio as indicators of capital structure. The study mainly focuses on panel data from 5 years by including pre and post-crisis periods. The sample size of the study is 20 engineering small and medium enterprises in Pakistan. The research uses inferential statistical techniques to extract results. The findings depict that the financial crises have an insignificant effect on the capital structure of engineering small and medium enterprises in Pakistan. Moreover, by analyzing the statistics, we see that debt financing is frequently decreasing in engineering small and medium enterprises in Pakistan after the occurrence of this financial crisis globally.

Downloads

Published

2025-04-16

How to Cite

Sarfaraz Ahmed Bhutto, Nazia Nazeer, and Kewal Talreja. 2025. “The Impact of Global Financial Crisis on Capital Structure: Analyzing the Severity of Its Impact on Engineering SMEs in Pakistan? ”. Metallurgical and Materials Engineering 31 (4):104-16. https://doi.org/10.63278/1411.

Issue

Vol. 31 No. 4 (2025)

Section

Research

License

Copyright (c) 2025 Sarfaraz Ahmed Bhutto, Nazia Nazeer, Kewal Talreja

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors who publish with this journal agree to the following terms:

  • Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
  • Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
  • Authors are permitted and encouraged to post their published articles online (e.g., in institutional repositories or on their website, social networks like ResearchGate or Academia), as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

 

Creative Commons License
Except where otherwise noted, the content on this site is licensed under a Creative Commons Attribution 4.0 International License.