The purpose of this study is to investigate the determinants of the capital structure of firms operating in a developing economy, Pakistan. The quantile regression method is applied on a sample of 183 non-financial companies listed on the Pakistan Stock Exchange during the period of 2008-2017. Specifically, the empirical analysis focuses on changes in the coefficients of the determinants according to the leverage ratio quantiles of the examined listed firms. The findings show that the capital structure of Pakistan listed firms differs between firms in different quantiles of leverage. These differences are significant with the sign of explanatory variables changes with the level of leverage. The research result found tangibility, profitability and age to be positively related to leverage among listed firms in Pakistan. However, size, liquidity and non-debt tax shield (NDTS) are negatively related to leverage. A firm’s growth and risk are found to be insignificant predictors of capital structure in Pakistan listed firms. Moreover, the study also found a significant impact of industry characteristic on leverage. The findings of this study indicate that an individual firm’s finance policy needs to be responsive to the firm’s characteristics and should match with the different borrowing requirements of listed firms.

Abstract
1. Introduction
2. Literature Review
    2.1. Firm Size
    2.2. Tangibility
    2.3. Liquidity
    2.4. Profitability
    2.5. Age
    2.6. Non-Debt Tax Shield
    2.7. Risk
    2.8. Growth
3. Data and Methodology
    3.1. Data
    3.2. Methodology
4. Results and Discussion
5. Conclusions
References

• Karamat KHAN(School of Finance, Zhongnan University of Economics and Law) Corresponding Author
• Jing QU(School of Economics and Management, Huanghuai University)
• Muhammad Haroon SHAH(School of Finance, Zhongnan University of Economics and Law)
• Kebba BAH(School of Finance, Zhongnan University of Economics and Law)
• Irfan Ullah KHAN(Nanjing University of Information Science and Technology)