Impact of Distribution and Promotional Expenditure on the Profitability of the Pharmaceutical Firms in India

This paper examines the relationship between Distribution and Promotional expenditure on the profitability of pharmaceutical firms in India using data collected from 137 pharmaceutical companies working in the Indian economy from 2017 to 2022. The study employs a panel data model analysis with Distribution and promotional expenditure as the independent variables, Operating Profit and Profit after Tax as the dependent variable, and Sales as the Control Variable. The analysis's results show that the independent variable has a substantial influence on the dependent variable, as shown by the significant p-values for the coefficients of selling expenditures and ln sales, respectively, and the R-square and SE values of.7662 and 3604.2096, respectively (operating profit). Academicians could use the study in this work to more critically assess how well the endogenous growth model applies to pharmaceutical companies and to acquire more empirical data to back up our findings.