ItemArticle

Intellectual capital independent directors and leverage as determinants of sustainable growth in Indian pharmaceutical companies listed in the NSE NIFTY pharma index

Title
Intellectual capital independent directors and leverage as determinants of sustainable growth in Indian pharmaceutical companies listed in the NSE NIFTY pharma index
Creator
Manigandan, R.; Balaji, Vaishnavi; Supriya, R.; Priya, A. Shakti; Parthasarathi, N.
Description
This research investigates how Intellectual Capital (IC) influences the Sustainable Growth Rate (SGR) of Indian pharmaceutical firms that are part of the NSE NIFTY Pharma index. This study delves deeper into the moderating influence of Independent Directors and examines the control effect of Leverage (Debt-Equity Ratio) on this relationship. A descriptive research design was utilized, employing panel data from FY 2015 to FY 2024. The dataset was obtained from the Prowess database (CMIE), and the Two-Step System GMM method was utilized with STATA 18 to guarantee a thorough econometric analysis. The findings indicate that Intellectual Capital (IC) plays a crucial role in enhancing SGR, thereby reinforcing the Resource-Based View (RBV). Independent Directors effectively moderate this relationship, strengthening Agency Theory. Nonetheless, leverage has a detrimental effect on SGR, consistent with Pecking Order Theory. Pharmaceutical companies ought to allocate resources towards Intellectual Capital, enhance corporate governance, and uphold appropriate debt levels to ensure sustained long-term growth. This study effectively combines IC, corporate governance, and financial leverage in the Indian pharmaceutical sector, providing valuable concrete insights for policymakers, academics, and industry experts. The Author(s) 2026.
Source
Discover Sustainability;Volume;7;Issue;1;Article No.;114;
Date
01-01-2026
Publisher
Springer Nature
Subject
Independent directors; Intellectual capital; Leverage; NSE NIFTY pharma index; Pharmaceutical companies; Sustainable growth
Coverage
Manigandan R., SRM Institute of Science and Technology, Vadapalani Campus, Tamil Nadu, Chennai, 600026, India; Balaji V., Department of Management Studies, Dayananda Sagar College of Engineering, Bangalore, 560078, India; Supriya R., School of Business and Management, Christ University, Yeshwanthpur Campus, Karnataka, Bangalore, 560073, India; Priya A.S., VIT Business School, VIT Vellore, Tamil Nadu, Vellore, 632014, India; Parthasarathi N., School of Commerce & Management Studies, SCMS_PG, Dayananda Sagar University, Kudlu Gate Campus, Karnataka, Bangalore, 560068, India
Rights
All Open Access; Gold Open Access
Relation
ISSN: 26629984;
Format
online
Language
English
Type
Article

Citation

Manigandan, R.; Balaji, Vaishnavi; Supriya, R.; Priya, A. Shakti; Parthasarathi, N., “Intellectual capital independent directors and leverage as determinants of sustainable growth in Indian pharmaceutical companies listed in the NSE NIFTY pharma index,” CHRIST (Deemed To Be University) Institutional Repository, accessed June 18, 2026, https://archives.christuniversity.in/items/show/22153.

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