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Environmental disclosure and firm efficiency: a study of Pakistani firms

Imad Rahim (NUST Business School, National University of Sciences and Technology, Islamabad, Pakistan)

Asian Review of Accounting

ISSN: 1321-7348

Article publication date: 23 March 2021

Issue publication date: 13 August 2021




The purpose of this paper is to examine the effect of environmental disclosure on firm efficiency of the listed firms in Pakistan.


The study uses secondary sources such as sustainability reports, annual reports and company websites to collect the data. A sample of 46 large firms is selected based on market capitalization and listing on the KSE-100 index.


The results suggest that environmental disclosure plays a significant positive role in determining the efficiency of the listed firms. The robustness test also confirms these results.

Research limitations/implications

The study suggests that regulators should take appropriate steps for better and increase the firm's environmental disclosure. The number of sample firms restricts the generalization of results from this study. However, the results are consistent and can be validated using a large sample.

Practical implications

The study includes implications to develop strict guidelines on environmental disclosure in response to its positive effect on the efficiency of the firm.


The study contributes to the growing environmental and efficiency literature by providing empirical evidence from a developing country where there are no strict guidelines on environmental regulations. This study is one of the first to capture environmental disclosure and measure efficiency by employing the data envelopment analysis (DEA) method in developing markets.



The author acknowledges the thoughtful input of the anonymous referees and helpful comments of the editor Dr. Haiyan Zhou and Assoc. Prof. Joseph Zhang.


Rahim, I. (2021), "Environmental disclosure and firm efficiency: a study of Pakistani firms", Asian Review of Accounting, Vol. 29 No. 3, pp. 269-290.



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