Prior evidence that firm’s investment behavior is positively affected by its corporate social responsibility (CSR) disclosure, as one of the key CSR areas of the company, leaves unaddressed whether all kinds of disclosure have the same effect. Drawing on stakeholder theory, this study analyzes the issue in a more exhaustive way. A cross-sectional logistic regression model is used to test the hypothesized association, and the results imply that firms’ high (low)-quality disclosure regarding their engagement in CSR activities increases their chances of being from the investment-efficient (inefficient) group. The obtained results conclude that CSR reporting activity is not beneficial for companies unless a meaningful disclosure of sustainability information is made. Our results are robust to using alternative proxies for CSR disclosure quality. This study contributes to the scarce evidence on CSR reporting in Pakistan and provides a useful method for assessing quality of CSR reports.

Objective: This study exemplifies how banking sector development influences capital structure of non-financial Sector firms. Methodology: In this study, deductive approach has been used and capital structure used as explained variable. Banking sector development used as explanatory variable and proxies by five key ratios. The six years data ranges from the year 2010 to 2015 used and fixed effect model applied for regression analysis. Findings: The statistical results indicate that first and 4th hypotheses partially accepted while second and third hypotheses fully rejected. The results of study recommend financing policy for finance mangers to consider banking sector development while deciding capital structure. Originality: This study may mark as first study in Pakistan which checks the regression among discussed variables and also the behavior of change.