The study attempts to analyze the impact of firm’s risk on capital structure in the context of seasonal and non-seasonal businesses. We use two independent variables namely credit risk and systematic risk and one dependent variable to explore this connection. Sugar sector is taken as seasonal while the textile sector as non-seasonal businesses. The panel data of twenty-five firms from each sector are taken ranging for the period of 2012 to 2019 which has been retrieved from their annual reports for empirical analysis of the study. The results reveal the negative impact of credit risk on capital structure in both types of businesses. Increasing (decreasing) one point of credit risk causes a decrease (increase) leverage ratio by 0.27 points for seasonal while increasing (decreasing) one point of credit risk causes to decrease (increase) leverage by 0.15 points for non-seasonal businesses. Furthermore, the study shows positive impact of systematic risk on leverage ratio in non-seasonal business and no impact in seasonal business. Any increase (decrease) in the systematic risk causes an incline (decline) leverage ratio by 2.68 units for non-seasonal businesses. The study provides a guideline to managers for risk management in businesses. The research focusses on theoretical as well as managerial and policy implications on risk management in businesses.

Abstract
1. Introduction
    1.1. Problem Statement
    1.2. Research Objectives
2. Literature Review
    2.1. Credit Risk and Capital Structure (Leverage)
    2.2. Systematic Risk and Capital Structure(Leverage)
    2.3. Firm Size, Growth and Capital Structure(Leverage)
3. Data and Methodology
    3.1. Variables
    3.2. Econometric Model
4. Empirical Results
    4.1. Descriptive Statistics
    4.2. Correlation Analysis
    4.3. Regression Analysis
5. Discussions and Conclusions
References

• Safdar Husain TAHIR(Lyallpur Business School, Govt. College University, Faisalabad, Pakistan) Corresponding Author
• Mirza Muhammad MOAZZAM(Lyallpur Business School, Government College University, Faisalabad, Pakistan.)
• Nayyer SULTANA(Department Public Administration, Government College Women University, Faisalabad, Pakistan.)
• Gulzar AHMAD(Department of Psychology, Lahore Garrison University, Lahore, Pakistan.)
• Ghulam SHABIR(MS-Scholar, Lyallpur Business School, Government College University, Faisalabad, Pakistan.)
• Filza NOSHEEN(MS-Scholar, Lyallpur Business School, Government College University, Faisalabad, Pakistan)