The purpose of this study is to investigate the relationship between financial variables and systematic risk. The studied variables are explored as determinants of systematic risk. This study analyzed the annual data over the period of 2005-2015 from selective industry. To test the studied hypotheses simultaneously, panel tests were applied along with multiple regression analysis approach. The findings of sugar industry have shown that liquidity, leverage (insignificant), operating efficiency, dividend payout, and chin model are inversely associated while profitability and Tobin q (insignificant) are positively related with Systematic risk. The regression results show that significant association of liquidity, profitability, operating efficiency, growth, dividend payout and chin model are with earlier studies. The studied variables have decisive impact for determinants of Systematic risk. Findings are fruitful for all stakeholders to maximize the returns by reducing the risk factors.