Multiple Debt Finances and GRI Sustainability: Firm Level Evidence from the Diplomatic Developing Ties

Abstract

Sustainability performance has become critical to every industry. The study examines the effect of Multiple debt finances on financial performance and GRI sustainability economic performance, measured through GRI 201-1, economic performance approach, for period from 2007-2020. The study applied mixed panel regression models to analyse the sample of 253 non-financial firms from diplomatic developing ties, namely Pakistan and India. The empirical findings shows that short-run debts have significant positive, but long-term and total debts have significant negative performance effects. However, firm size and asset tangibility have performance effects for non-financial firms of Pakistan and India. The study applied trade off theory for supporting the implication of GRI sustainability economic performance.