Corporate governance practices and environmental reporting of companies in Malaysia

Finding possibilities of double thumbs up

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

Demonstrating good corporate governance and maintaining sound environmental performance are among the key challenges facing the organisation to ensure its sustainability. In an attempt to investigate the linkage between these two essential aspects, this study scrutinises the annual reports of 243 companies listed on the Main Board of Bursa Malaysia. There are six selected corporate governance attributes namely, board independence, CEOduality, management ownership, board size, financial expert and meeting frequency. Overall, it was found that the existence of environmental reporting is low. Only 28% of the companies disclosed environmental information. Furthermore, on average, each company reported 4.7 sentences, while the quality, as measured by the disclosure index shows an average of 3.24. The most significant corporate governance attributes in influencing the extent of environmental reporting are board size and management ownership. The finding provide limited evidence to support that, companies which comply with corporate governance practices have the tendencies to be more environmentally responsible.

Original languageEnglish
Pages (from-to)55-71
Number of pages17
JournalJurnal Pengurusan
Volume32
Publication statusPublished - 01 Jul 2011

Fingerprint

Malaysia
Environmental reporting
Corporate governance
Management ownership
Board size
Linkage
Environmental performance
Environmental information
Board independence
Sustainability
Disclosure index
Annual reports
Listed companies

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Accounting
  • Business, Management and Accounting (miscellaneous)

Cite this

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title = "Corporate governance practices and environmental reporting of companies in Malaysia: Finding possibilities of double thumbs up",
abstract = "Demonstrating good corporate governance and maintaining sound environmental performance are among the key challenges facing the organisation to ensure its sustainability. In an attempt to investigate the linkage between these two essential aspects, this study scrutinises the annual reports of 243 companies listed on the Main Board of Bursa Malaysia. There are six selected corporate governance attributes namely, board independence, CEOduality, management ownership, board size, financial expert and meeting frequency. Overall, it was found that the existence of environmental reporting is low. Only 28{\%} of the companies disclosed environmental information. Furthermore, on average, each company reported 4.7 sentences, while the quality, as measured by the disclosure index shows an average of 3.24. The most significant corporate governance attributes in influencing the extent of environmental reporting are board size and management ownership. The finding provide limited evidence to support that, companies which comply with corporate governance practices have the tendencies to be more environmentally responsible.",
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