Work

CSR Disclosure and the Zero-Leverage Phenomenon: Evidence from Pakistan Listed Firms

Year: 2026

Type: article

Abstract: The effect of corporate social responsibility (CSR) disclosure on zero-leverage policies is examined for listed firms at the Pakistan Stock Exchange (PSX) from 2010 to 2021. Binary logistic regression models show a statistically significant positive relationship between CSR disclosure and zero leverage. Increased CSR disclosure raises the propensity of firms to have zero leverage. Moreover, the negative effect of CSR disclosure on debt ratios further confirms these findings. Results show that highly disclosed CSR firms face less information asymmetry and prefer equity financing over bank debt. Regulators should develop incentive programs to increase their CSR disclosure and strengthen stakeholders’ relationships.

Source: International Journal of Financial Studies

DOI: 10.3390/ijfs14020041

Authors: Affaf Asghar Butt, Aamer Shahzad, Sadia Anis, Luís Miguel Marques, Flávio Morais

Institutions: University of the Punjab, University of Beira Interior, Polytechnic Institute of Viseu

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $2,172

Funder: Fundação para a Ciência e a Tecnologia