This study examines the role of earnings management in the relationship between firm performance and capital structure, dividing earnings management into discretionary and nondiscretionary accruals to test established theories on the capital structure. Using data on 802 companies in the member...

Capital structure of the financial institutions and banks determine agency cost of financial sector of the economy. In this study we explore the agency cost hypothesis of banking sector of Pakistan using panel data of 22 banks for the period 2002 to 2009. We employed the idea of using profit as...