International Research Journal of Education and Technology

This study examines the effect of firm size on profitability among 30 companies listed on the Bombay Stock Exchange (BSE) over a ten-year period from 2014 to 2023. Return on Assets (ROA) is employed as the measure of profitability, while the natural logarithm of total assets serves as the proxy for firm size. Leverage (debt-to-asset ratio) and sales growth are incorporated as control variables. Using descriptive statistics, Pearson correlation analysis, and multiple regression, the study finds that firm size exerts a positive and statistically significant impact on profitability. Leverage is found to have a significant negative effect, consistent with the trade-off theory of capital structure, whereas sales growth has a positive and significant relationship with ROA. The overall model explains approximately 42% of the variation in profitability (R² = 0.42), confirming its explanatory adequacy. The findings offer actionable implications for corporate managers, investors, and policymakers in the Indian context.

Keywords: Firm Size, Profitability, Return on Assets (ROA), Leverage, Sales Growth, BSE Companies, Financial Performance, Panel Data Analysis, Capital Structure, Indian Corporations