CSR Disclosure and the Zero-Leverage Phenomenon: Evidence from Pakistan Listed Firms
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.
Fields of Study & Subjects
Corporate Social Responsibility Reporting
Auditing
Earnings Management
Governance
Corporate Social Responsibility Disclosure
Publication details
- Journal / source
- International Journal of Financial Studies
- Publisher
- MDPI AG
- Volume
- 14
- Issue
- 2
- Pages
- 41–41
- Publication date
- 5 February 2026
- Language
- EN