ABSTRACT
The association between investment decisions and the profitability of companies listed on the New York Stock Exchange is investigated in this study. The paper demonstrates a correlation between investment decisions, as indicated by asset growth, financial leverage, liquidity and business profitability. In the first section of the paper, comprehensive information and importance of them is given about variables used in the research. After that previous studies related to the topic are deeply analyzed and conclusions from those are indicated for further reference. In the last section the paper econometric models are used to determine the relationship between variables. In the data analysis part statistical findings pertaining to financial leverage and profitability are displayed. The findings of this study have important policy implications for firms. The study discovered that performance improved with higher investment decision, and financial leverage. In order to maximize profitability, the study advises corporate managers to allow for new opportunities in order to be more innovative, which will lead to new investments and higher financial leverage - in particular. In order to boost performance as indicated by return on equity, management of listed companies is advised to pursue a conservative financing strategy.

Keywords: investment, financial leverage, liquidity, performance, business profitability

JEL Classification: G11, G31, G32