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VOL. 13, ISSUE 1 (2026)
Capital structure and leverage risk of a conglomerate company: An empirical study of Aditya Birla Group
Authors
Deepit James
Abstract
The study explores how a leverage risk of
conglomerate firm is influenced by financial growth in context of Aditya Birla
Group. It uses liability-asset growth and equity-asset growth which meant to
influence Debt-Equity ratio to examine how company is sustained through
leverage risk. While recent research highlights liquidity and market factors
like the debt-equity ratio, it often ignores structural elements related to
long-term leverage risk. The study implemented quantitative approach based on
secondary data to examine leverage risk in Aditya Birla Group, using data from
MoneyControl from 2017 to 2025. Results show that the firm's leverage fluctuates
over time, influencing financial risk and capital structure. The leverage risk
is significantly influenced by the composition of the capital structure, with
higher debt levels being associated with lower profitability. However, no
significant structural differences were found between the pre- and
post-periods, indicating overall financial stability.
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Pages:519-522
How to cite this article:
Deepit James "Capital structure and leverage risk of a conglomerate company: An empirical study of Aditya Birla Group". International Journal of Multidisciplinary Research and Development, Vol 13, Issue 1, 2026, Pages 519-522
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