Determinants of environmental reporting quality in Malaysia
The study examines the relationship between share ownership distribution, profitability, firm size and leverage with the quality of environmental disclosure in annual reports in 2009, two years after Malaysia made corporate social responsibility disclosure mandatory for all listed companies. Thr...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
International Islamic University Malaysia
2014
|
| Subjects: | |
| Online Access: | http://irep.iium.edu.my/41500/ http://irep.iium.edu.my/41500/ http://irep.iium.edu.my/41500/1/IJEMA_2014.pdf |
| Summary: | The study examines the relationship between share ownership distribution,
profitability, firm size and leverage with the quality of environmental
disclosure in annual reports in 2009, two years after Malaysia made
corporate social responsibility disclosure mandatory for all listed
companies. Three theories; legitimacy, resource based view and information
provided the theoretical underpinnings of the study. A content analysis of
the annual report of 164 companies in the environmentally sensitive
industries (ESI) was undertaken. Disclosure quality was measured using a
self-developed index adapted from prior studies. The findings revealed a
significant positive association between firm size and leverage with the
quality of environmental reporting, thus providing the support for
legitimacy theory. Given that share ownership distribution and profitability
had no significant relationship with the quality of environmental reporting,
the use of resource based view and information cost theories did not provide
any support in explaining environmental reporting behavior of companies in
the environmentally sensitive industries in Malaysia. |
|---|