, business risk, growth rate, profitability, non-tax shield - of listed aluminium companies of India for the 17 years from 1991 … tangibility, profitability, life, growth, volatility and non-debt tax shield (NDTS). The asset composition, life and growth are … profitability and NDTS have significant negative relations with leverage. But, only one factor, volatility, does not seem to have …

Operating leverage increases profitability and reduces optimal financial leverage. Thus, operating leverage generates a … negative relation between profitability and financial leverage that is thought to be inconsistent with the trade-off theory …, but is commonly observed in the data. We demonstrate the effect of operating leverage on firms' profitability and …