Examining the Relationship Between Financial Leverage and Shareholder Payoffs: Insights from the Pharmaceutical Sector in India

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Bashir Amad Khan
Bashir Amad Khan
1 University of Kashmir

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GJMBR Volume 23 Issue C4

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This paper empirically examined the effect of financial leverage on payoffs to shareholders, a study of listed Pharmaceutical firms in India. Using annual panel data for a period of 13 years, ranges from 2007-08 to 2019-20 with the application of econometric techniques. The empirical results show that Long Term Debt to Total Assets (LTD/TA) have positive relationship, while Total Debt to Total Assets (TD/TA) has negative relation with Return on Assets (ROE). Thereby evidenced that financial leverage has significant effect on firm performance specifically in terms of payoffs to shareholders particularly during Normal/Bullish phase of Economy when measured through EPS & ROE in sample Pharmaceutical Companies in India.

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No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Bashir Amad Khan. 2026. \u201cExamining the Relationship Between Financial Leverage and Shareholder Payoffs: Insights from the Pharmaceutical Sector in India\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 23 (GJMBR Volume 23 Issue C4): .

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Alt: Academic research paper analyzing financial leverage and shareholder payoffs in pharma sector India.
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GJMBR Volume 23 Issue C4
Pg. 15- 31
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: (LCC): HJ9-9940:
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January 13, 2024

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English

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This paper empirically examined the effect of financial leverage on payoffs to shareholders, a study of listed Pharmaceutical firms in India. Using annual panel data for a period of 13 years, ranges from 2007-08 to 2019-20 with the application of econometric techniques. The empirical results show that Long Term Debt to Total Assets (LTD/TA) have positive relationship, while Total Debt to Total Assets (TD/TA) has negative relation with Return on Assets (ROE). Thereby evidenced that financial leverage has significant effect on firm performance specifically in terms of payoffs to shareholders particularly during Normal/Bullish phase of Economy when measured through EPS & ROE in sample Pharmaceutical Companies in India.

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Examining the Relationship Between Financial Leverage and Shareholder Payoffs: Insights from the Pharmaceutical Sector in India

Bashir Amad Khan
Bashir Amad Khan University of Kashmir

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