The study examines the existing empirical research works pertaining to financial leverage and its impact on firm's profitability. The review considers the determinants of financial leverage as a part of capital structure decisions of firms. The theories of capital structure are considered as crucial in corporate financing decisions and in many research studies the capital structure theories explained the importance of debt financing. The review upholds the importance of financial leverage on firm profitability and researcher has made an attempt to trace out the determinants of leverage. The review is based on the research work done so far on leverages and its impact on firm profitability were majorly considered and those works related to leverage , firm profitability and determinants of leverage are the main key words used to do review , with the help of well defined inclusion and exclusion criteria. Research Methodology: The present study is based on empirical reviews and secondary data has been collected from various sources like peer-reviewed journals, Scopus indexed journals and books were considered and also used working papers on leverages etc. it is a descriptive and conceptual research paper on financial leverage, Capital structure and its impact on firm profitability. Results: The findings of the study revealed that factors such as growth rate, liquidity, tangibility have significant impact on leverage and other factors like firm size, profitability also have positive association with leverage in few studies.

This study aimed to n use values the company can be determined by many factors, among which the size of the company, leverage, the price earnings ratio (PER) and Return On Equity (ROE) Firm size is considered able to influence the value of the company . the large size of the company shows that the company is developing so that investors will respond positively and the value of the company will increase. The relative market share shows the company's competitiveness is higher than its main competitors. Investors will respond positively so that the value of the company will increase. Companies that have total assets with large amounts or commonly referred to as large companies will get more attention from investors, creditors and other users of financial information compared to small companies. If the company has a large total assets, the management will be more flexible in using existing assets in the company. This ease in controlling assets will increase the value of the company....

Capital generation to fund everyday operations and long-term expansions is a constant concerning element in the corporate world. This study aims to investigate the optimal level of capital structure that firms can adopt to improve their financial performance given the industry dynamics and economic circumstances of the country. Using Hausman’s specification test, annual data for the period 2005 – 2014 of Karachi Stock Exchange (KSE) 100 index listed securities has been collected to analyze the impact of financial leverage on the firms’ performance. Return on assets, return on Equity, and TOBIN’s Q are the proxies of financial performance analyzed against financial leverage for the KSE 100 index listed firms. The finding of the paper indicates that capital structure, leverage, interest cover and sales growth as most significant variables impacting firms’ profitability. DOI: 10.15408/etk.v17i1.6102

This study examines the relationship between several financial indicators (profitability& leverage measures) and stock return, to assist the management in the Jordanian manufacturing companies in decision making. The study sample consists of 65 manufacturing companies that have been listed in Amman Stock Exchange over the 10-year period (2001-2011). Five financial ratios are used to examine the relationship between profitability measures (Net Profit margin (NPM), Gross Profit Margin (GPM), Return on Assets (ROA), Return on Equity (ROE), Earnings per Share (EPS)) and stock returns.Three financial ratios are used to examine the relationship between leverage measures (Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (CR)) and stock returns. Statistical analysis undertaken to examine the relationship between stock return and the financial indicators (Profitability and Leverage measures) are: correlation analysis, multiple regression and descriptive statistics. Data are obtained from the published annual reports and the monthly statistical bulletins issued by (ASE) over the study period. The results show that (GPM), (ROA), (ROE), and (EPS) have a significant relationship with stock return. And the others (NPM) and leverage measures ((DR), (DER), and (CR)) don't have a significant relationship with stock return. This study recommends managers of manufacturing companies to focus more on financial ratios that have significant relationship with stock return for more profits and less debts, future research is also recommended to examine this relation in other sectors and to use other financial ratios.

Development in different fields, which has led the past not apply and have to follow a set of new ways to analyze the data. In financial management because of the progress that has been made in recent decades. To forecast the company's profitability and performance evaluation criteria traditionally used. It seems to offer a new way to assess performance, such as economic value added by the Institute of Stern Stewart saw the gradual replacement Rather than the traditional criteria for performance evaluation and the analysis of financial statements. This study is a cross-sectional. The study population consisted of all petrochemical companies listed on the Tehran Stock Exchange, includes 14 companies, in 2008 to 2013. In this study, analysis of documents selected companies, including the financial statements and notes is attached is used. Software for data collection, application processor manages the Trading System Stock Exchange used to be abundant. The results showed that by increasing the leverage ratio, reduced economic value. It can be concluded that there is a relationship between economic value and leverage ratio.

The purpose of this paper is to empirically investigate the impact of capital structure on firm performance. Multiple regression analysis is used in the study in estimating the relationship between the leverage level and firm's performance. Using four of accounting-based measures of financial performance (i.e. return on equity (ROE), return on assets (ROA), market value of equity to the book value of equity (MBVR), Tobin's Q ), and based on a sample of 85 firms listed in Tehran Stock Exchange from 2006 to 2011. The results indicate that firm performance, which is measured by (ROE,MBVR & Tobin's Q) is significantly and positively associated with capital structure, while report a negative relation between capital structure and (ROA, EPS). Altogether, our study provides evidence that indicates firm performance is positively or even negatively related to capital structure.

The purpose of this study is to determine influence of Leverage, Growth, Firm Size, Dividend Policy and Interest rate on the value of the company of construction and building sub-sector companies listed on the Indonesia Stock Exchange during the observation period 2014 - 2020. The research sample in this study consists of 7 companies determined by conducting purposive sampling. In this study, uses secondary data from financial statements were reported by construction and building sub-sector companies. Research methods uses descriptive statistics and inferential statistics using the Random Effect Model. The results showed that Leverage and Interest Rate have a significant positive effect, Firm Size has a negative and significant effect. While the Growth and Dividend Policy has no effect on the value of the company.