Impact of Leverage, Profitability and Dividend Policy on Firm Value: An Explanatory Study

Abstract

This research investigated the relationship between leverage, profitability and dividend policy and firm value for the steel companies, based on market capitalization, listed on the Bombay Stock Exchange. The study utilized data from audited financial statements of 6 companies spanning from 2019 to 2024 i.e. for a period of 5 years. The study employed descriptive statistics and multiple regression analysis to assess the data. The study showed that the selected variables viz., debt equity ratio, return on net-worth and dividend payout ratio have no significant impact on the dependent variable firm value. The author recommended to companies and policymakers to make informed decisions in identifying the internal reasons for having such no impact to improve the situation and thereby helping investors to take informed decisions. Keywords: Market capitalization, Leverage, Firm value, Dividend policy, profitability