Sustainability Disclosure and Firm Value: A Panel Analysis of Indian Pharmaceutical Companies
Sustainability Disclosure and Firm Value: A Panel Analysis of Indian Pharmaceutical Companies
Author(s): Jaba CHAKRABORTY, Razia NAGINA, Mandakini PARUTHI, Rashmita SARAN, Farjana SALAMSubject(s): Economy, Business Economy / Management, Micro-Economics
Published by: RITHA Publishing
Keywords: ESG disclosure; firm value; Tobin’s Q; Indian pharmaceutical industry; panel data analysis; sustainability reporting; emerging markets;
Summary/Abstract: This research examines the impact of Environmental, Social, and Governance (ESG) disclosures on firm value within the Indian pharmaceutical sector from 2015 to 2025. Utilizing a panel data regression framework with fixed-effects estimation, the study analyses how composite ESG scores and individual pillars correlate with market performance as measured by Tobin’s Q. Controlling for firm size, leverage, and age, the empirical results indicate that while aggregate ESG performance shows a statistically insignificant correlation with market value, the 'Social' pillar emerges as a significant positive driver of firm valuation.These findings suggest that investors in emerging markets prioritise social impact and labour practices over environmental disclosures in specialized sectors like healthcare. The study provides critical insights for corporate managers and policymakers, suggesting that structural reforms in sustainability reporting should emphasise sector-specific metrics to enhance transparency and financial sustainability in transitional economies.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XXI/2026
- Issue No: 2(92)
- Page Range: 495-513
- Page Count: 19
- Language: English
