Vol. 11, Issue 3, Part E (2025)

Abstract
This study examines the impact of financial leverage on firm value in developing countries like India, which are characterized by capital constraints and market imperfections. Using panel data from 262 firms listed on the Bombay Stock Exchange over ten years, the analysis finds a positive and significant relationship between leverage and firm valuation. The findings highlight the nuanced role of leverage in developing economies and emphasize the need for balanced financing strategies. This research contributes empirical evidence to the capital structure debate within emerging market contexts.