* Significant at five percent level Significant atone percent level Constant: 9.800, Std. Error of Estimate 5.694, R 2 : 0.458, R 2 : 0.481 ** i. Leverage The regression coefficient indicates that leverage negatively influences the level of profit. The value of regression coefficient indicates that a unit of decrease in leverage shall increase profit by 1.662 units. Lower amount of leverage leads to higher level of profit. ii. Size The regression coefficient indicates that company size positively influences the level of profit. The value of regression coefficient indicates that a unit increase in company size shall increase profit by 0.018 units. Assize of company increases the earning capacity also increases.
