• Ravleen Kaur

The challenge before every financial manager in today’s developing market is to keep its investors contended. Apart from investing decision the focus today is deciding right mix of financing structure and along with it maximizing the shareholders wealth. A firm should focus its productive activities and select such a financing source, which will achieve the objective of wealth maximization. The financial leverage is an essential requirement for achieving optimal capital structure. An optimal capital structure affects the value of firm through reduced cost of capital. In the present study, an attempt was made to determinate optimal financial leverage for the pharmaceutical sector and to find out its impact on the firms over all capital structure. Simple Linear Regression analysis was carried out to judge the impact of financial leverage on shareholders return and market capitalisation individually. The findings reveal that that financial leverage has no strong influence on the shareholder return of leveraged sample pharmaceutical firms.

Financial leverage, Return on shareholders fund, Market capitalization

"A Study on Impact of Financial Leverage on Shareholders Return and Market Capitalisation (with special reference to Indian Pharmaceutical Companies)", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 3, page no.d365-d371, March-2022, Available :http://www.jetir.org/papers/JETIR2203349.pdf

"A Study on Impact of Financial Leverage on Shareholders Return and Market Capitalisation (with special reference to Indian Pharmaceutical Companies)", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 3, page no. ppd365-d371, March-2022, Available at : http://www.jetir.org/papers/JETIR2203349.pdf