摘要：This paper examined the impact of firm-s age and capital structure on firm-s performance of cement sector in Pakistan. In this paper sample of 10 firms of cement sector is taken data duration consists of five years from 2007 to 2011. In this paper return on assets, return on equity, assets turnover, current liabilities to total assets, long term liabilities to total assets, firm age and debt to equity variables are used. Multiple regression models are applied in order to test data. The results of this study show that firm-s age has a significant impact on firm-s performance. As firms move towards maturity its performance also decreased. Business life cycle theory also supports this statement that firms lose their value with the passage of time. It is analyzed that older firms are highly leveraged. Results of this study show that firms with average age 33 years have 63% debt in their capital structure. Short term debts of such firms are higher and their long term debts are lower. Short term debts are costly as compare to long term debts which ultimately negatively impact on firm-s performance. It is also analyzed that there is a negative relationship between firm-s age and debt equity ratio. Long term debts have significant impact on performance.
