IDEAS home Printed from https://ideas.repec.org/a/eme/arapps/v15y2007i2p185-199.html
   My bibliography  Save this article

Environmental disclosure and performance reporting in Malaysia

Author

Listed:
  • Malcolm Smith
  • Khadijah Yahya
  • Ahmad Marzuki Amiruddin

Abstract

Purpose - The purpose of this paper is to examine the extent to which the environmental disclosures in annual reports of companies listed on the Kuala Lumpur Stock Exchange are associated with corporate characteristics. Design/methodology/approach - A rating system for environmental disclosures was developed, based on a review of previous studies, embracing industry membership, financial performance, share price fluctuations, political cost proxies, dependence on debt and the capital market. Findings - The findings suggested that environmental disclosure is negatively associated with company financial performance. A significant inverse relationship between disclosure score and return on assets is apparent, suggesting that environmental disclosure in Malaysia has different priorities from disclosures elsewhere. Originality/value - This study is the first of its kind to be conducted in Malaysia, and its empirical findings complement the expectations of prior studies.

Suggested Citation

  • Malcolm Smith & Khadijah Yahya & Ahmad Marzuki Amiruddin, 2007. "Environmental disclosure and performance reporting in Malaysia," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 15(2), pages 185-199, April.
    • Handle: RePEc:eme:arapps:v:15:y:2007:i:2:p:185-199
    DOI: 10.1108/13217340710823387
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/13217340710823387/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/13217340710823387/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/13217340710823387?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hughes, Susan B. & Anderson, Allison & Golden, Sarah, 2001. "Corporate environmental disclosures: are they useful in determining environmental performance?," Journal of Accounting and Public Policy, Elsevier, vol. 20(3), pages 217-240.
    2. Ans Kolk & Seb Walhain & Susanne van de Wateringen, 2001. "Environmental reporting by the Fortune Global 250: exploring the influence of nationality and sector," Business Strategy and the Environment, Wiley Blackwell, vol. 10(1), pages 15-28, January.
    3. Patten, Dennis M., 2002. "The relation between environmental performance and environmental disclosure: a research note," Accounting, Organizations and Society, Elsevier, vol. 27(8), pages 763-773, November.
    4. Cowen, Scott S. & Ferreri, Linda B. & Parker, Lee D., 1987. "The impact of corporate characteristics on social responsibility disclosure: A typology and frequency-based analysis," Accounting, Organizations and Society, Elsevier, vol. 12(2), pages 111-122, March.
    5. Teoh, Hai-Yap & Thong, Gregory, 1984. "Another look at corporate social responsibility and reporting: An empirical study in a developing country," Accounting, Organizations and Society, Elsevier, vol. 9(2), pages 189-206, June.
    6. Patten, Dennis M., 1992. "Intra-industry environmental disclosures in response to the Alaskan oil spill: A note on legitimacy theory," Accounting, Organizations and Society, Elsevier, vol. 17(5), pages 471-475, July.
    7. Wiseman, Joanne, 1982. "An evaluation of environmental disclosures made in corporate annual reports," Accounting, Organizations and Society, Elsevier, vol. 7(1), pages 53-63, January.
    8. Cormier, Denis & Magnan, Michel, 2003. "Environmental reporting management: a continental European perspective," Journal of Accounting and Public Policy, Elsevier, vol. 22(1), pages 43-62.
    9. Alan Murray & Donald Sinclair & David Power & Rob Gray, 2006. "Do financial markets care about social and environmental disclosure?: Further evidence and exploration from the UK," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 19(2), pages 228-255, February.
    10. Haslinda Yusoff & Glen Lehman & Noraini Mohd Nasir, 2006. "Environmental engagements through the lens of disclosure practices: A Malaysian story," Asian Review of Accounting, Emerald Group Publishing, vol. 14(1), pages 122-148, July.
    11. Al-Tuwaijri, Sulaiman A. & Christensen, Theodore E. & Hughes, K. II, 2004. "The relations among environmental disclosure, environmental performance, and economic performance: a simultaneous equations approach," Accounting, Organizations and Society, Elsevier, vol. 29(5-6), pages 447-471.
    12. Roberts, Robin W., 1992. "Determinants of corporate social responsibility disclosure: An application of stakeholder theory," Accounting, Organizations and Society, Elsevier, vol. 17(6), pages 595-612, August.
    13. Williams, S. Mitchell, 1999. "Voluntary environmental and social accounting disclosure practices in the Asia-Pacific region: an international empirical test of political economy theory," The International Journal of Accounting, Elsevier, vol. 34(2), pages 209-238, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Preeti Sharma & Priyanka Panday & R. C. Dangwal, 2020. "Determinants of environmental, social and corporate governance (ESG) disclosure: a study of Indian companies," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 17(4), pages 208-217, December.
    2. Massimiliano Cerciello & Francesco Busato & Simone Taddeo, 2023. "The effect of sustainable business practices on profitability. Accounting for strategic disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 802-819, March.
    3. repec:thr:techub:10031:y:2022:i:1:p:522-552 is not listed on IDEAS
    4. Nurul Choiriah* & Heri Yanto & Rifqi Ilhami, 2018. "Environmental Responsibility of Indonesian Manufacturing Companies," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 122-129:6.
    5. Chen, Yonghuai & Li, Tao & Zeng, Qing & Zhu, Bo, 2023. "Effect of ESG performance on the cost of equity capital: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 348-364.
    6. Alice Mazzucchelli & Roberto Chierici & Manlio Del Giudice & Ilenia Bua, 2022. "Do circular economy practices affect corporate performance? Evidence from Italian large‐sized manufacturing firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 2016-2029, November.
    7. Kraus, Sascha & Rehman, Shafique Ur & García, F. Javier Sendra, 2020. "Corporate social responsibility and environmental performance: The mediating role of environmental strategy and green innovation," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    8. Elijido-Ten, Evangeline, 2011. "Media coverage and voluntary environmental disclosures: A developing country exploratory experiment," Accounting forum, Elsevier, vol. 35(3), pages 139-157.
    9. Khawaja Fawad Latif & Aymen Sajjad & Rabia Bashir & Muhammad Bilal Shaukat & Muhammad Bilal Khan & Umar Farooq Sahibzada, 2020. "Revisiting the relationship between corporate social responsibility and organizational performance: The mediating role of team outcomes," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1630-1641, July.
    10. Yan lI, 2022. "Corporate Social Responsibility of Chinese Manufacturing Companies' effect on Green Business Strategy, Innovation and Performance," Technium Social Sciences Journal, Technium Science, vol. 31(1), pages 522-552, May.
    11. Sandra Escamilla‐Solano & Antonio Fernández‐Portillo & Mari Cruz Sánchez‐Escobedo & Carmen Orden‐Cruz, 2024. "Corporate social responsibility disclosure: Mediating effects of the economic dimension on firm performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 709-718, January.
    12. Rohaida Abdul Latif & Nurul Huda Yahya & Kamarun Nisham Taufil Mohd & Hasnah Kamardin & Arifatul Husna Mohd Ariffin, 2020. "The Influence of Board Diversity on Environmental Disclosures and Sustainability Performance in Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 287-296.
    13. Schlegelmilch, Bodo B. & Simbrunner, Philipp, 2019. "Moral licensing and moral cleansing applied to company-NGO collaborations in an online context," Journal of Business Research, Elsevier, vol. 95(C), pages 544-552.
    14. Alhassan Haladu & Basariah Bt. Salim, 2016. "Board Characteristics and Sustainability Reporting: Environmental Agencies' Moderating Effects," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1525-1533.
    15. Ye Lim Jung & Hyoung Sun Yoo, 2023. "Environmental, social, and governance activities and firm performance: Global evidence and the moderating effect of market competition," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 2830-2839, November.
    16. Haslinda Yusoff & Faizah Darus & Sharifah Aminah Ab Rahman, 2015. "Do corporate governance mechanisms influence environmental reporting practices? Evidence from an emerging country," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 10(1), pages 76-96.
    17. Hafiz Yasir Ali & Rizwan Qaiser Danish & Muhammad Asrar‐ul‐Haq, 2020. "How corporate social responsibility boosts firm financial performance: The mediating role of corporate image and customer satisfaction," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 166-177, January.
    18. Bhattacharyya, Asit & Rahman, Md Lutfur, 2019. "Mandatory CSR expenditure and firm performance," Journal of Contemporary Accounting and Economics, Elsevier, vol. 15(3).
    19. Silvia Carnini Pulino & Mirella Ciaburri & Barbara Sveva Magnanelli & Luigi Nasta, 2022. "Does ESG Disclosure Influence Firm Performance?," Sustainability, MDPI, vol. 14(13), pages 1-18, June.
    20. Muslichah Muslichah, 2020. "The effect of environmental and social disclosure on firm value with financial performance as intervening variable," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 24(1), pages 22-32, Juni.
    21. María del Mar Miras‐Rodríguez & Amalia Carrasco‐Gallego & Bernabé Escobar‐Pérez, 2015. "Are Socially Responsible Behaviors Paid Off Equally? A Cross‐cultural Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(4), pages 237-256, July.
    22. Guidry, Ronald P. & Patten, Dennis M., 2012. "Voluntary disclosure theory and financial control variables: An assessment of recent environmental disclosure research," Accounting forum, Elsevier, vol. 36(2), pages 81-90.
    23. Mukherjee, Abhishek & Bird, Ron & Duppati, Geeta, 2018. "Mandatory Corporate Social Responsibility: The Indian experience," Journal of Contemporary Accounting and Economics, Elsevier, vol. 14(3), pages 254-265.
    24. Evangeline Elijido‐Ten & Louise Kloot & Peter Clarkson, 2010. "Extending the application of stakeholder influence strategies to environmental disclosures," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 23(8), pages 1032-1059, October.
    25. Tafadzwa Mark Wasara & Fortune Ganda, 2019. "The Relationship between Corporate Sustainability Disclosure and Firm Financial Performance in Johannesburg Stock Exchange (JSE) Listed Mining Companies," Sustainability, MDPI, vol. 11(16), pages 1-23, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matthias S. Fifka, 2013. "Corporate Responsibility Reporting and its Determinants in Comparative Perspective – a Review of the Empirical Literature and a Meta‐analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 22(1), pages 1-35, January.
    2. Haslinda Yusoff & Glen Lehman & Noraini Mohd Nasir, 2006. "Environmental engagements through the lens of disclosure practices: A Malaysian story," Asian Review of Accounting, Emerald Group Publishing, vol. 14(1), pages 122-148, July.
    3. Aerts, Walter & Cormier, Denis & Magnan, Michel, 2008. "Corporate environmental disclosure, financial markets and the media: An international perspective," Ecological Economics, Elsevier, vol. 64(3), pages 643-659, January.
    4. Camélia Radu & Claude Francoeur, 2017. "Does Innovation Drive Environmental Disclosure? A New Insight into Sustainable Development," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 893-911, November.
    5. Aerts, Walter & Cormier, Denis, 2009. "Media legitimacy and corporate environmental communication," Accounting, Organizations and Society, Elsevier, vol. 34(1), pages 1-27, January.
    6. Charles H. Cho & Jonathan Maurice & Emmanuelle Nègre & Marie-Anne Verdier, 2016. "Is environmental disclosure good for the environment? A meta-analysis and research agenda," Post-Print halshs-01369422, HAL.
    7. Waris Ali & Jedrzej George Frynas & Zeeshan Mahmood, 2017. "Determinants of Corporate Social Responsibility (CSR) Disclosure in Developed and Developing Countries: A Literature Review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(4), pages 273-294, July.
    8. Michelon, Giovanna & Pilonato, Silvia & Ricceri, Federica, 2015. "CSR reporting practices and the quality of disclosure: An empirical analysis," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 33(C), pages 59-78.
    9. Stefano Fontana & Daniela Coluccia & Silvia Solimene, 2019. "VAIC as a Tool for Measuring Intangibles Value in Voluntary Multi-Stakeholder Disclosure," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(4), pages 1679-1699, December.
    10. Abeer Hassan & Essam Ibrahim, 2012. "Corporate Environmental Information Disclosure: Factors Influencing Companies' Success in Attaining Environmental Awards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 19(1), pages 32-46, January.
    11. Jane Andrew & Max Baker, 2020. "Corporate Social Responsibility Reporting: The Last 40 Years and a Path to Sharing Future Insights," Abacus, Accounting Foundation, University of Sydney, vol. 56(1), pages 35-65, March.
    12. Sónia Maria da Silva Monteiro & Beatriz Aibar‐Guzmán, 2010. "Determinants of environmental disclosure in the annual reports of large companies operating in Portugal," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 17(4), pages 185-204, July.
    13. Eugenio D'Amico & Daniela Coluccia & Stefano Fontana & Silvia Solimene, 2016. "Factors Influencing Corporate Environmental Disclosure," Business Strategy and the Environment, Wiley Blackwell, vol. 25(3), pages 178-192, March.
    14. María Luisa Pajuelo Moreno & Teresa Duarte-Atoche, 2019. "Relationship between Sustainable Disclosure and Performance—An Extension of Ullmann’s Model," Sustainability, MDPI, vol. 11(16), pages 1-33, August.
    15. Daniel Kouloukoui & Ângelo Marcio Oliveira Sant'Anna & Sônia Maria da Silva Gomes & Marcia Mara de Oliveira Marinho & Pieter de Jong & Asher Kiperstok & Ednildo Andrade Torres, 2019. "Factors influencing the level of environmental disclosures in sustainability reports: Case of climate risk disclosure by Brazilian companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 791-804, July.
    16. Emerald Edem Welbeck & Godfred Matthew Yaw Owusu & Rita Amoah Bekoe & John Amoah Kusi, 2017. "Determinants of environmental disclosures of listed firms in Ghana," International Journal of Corporate Social Responsibility, Springer, vol. 2(1), pages 1-12, December.
    17. Charles H. Cho & Martin Freedman & Dennis M. Patten, 2009. "Corporate Disclosure Of Environmental Capital Expenditures: A Test Of Alternative Theories," Post-Print halshs-00459410, HAL.
    18. Evangeline Elijido‐Ten, 2007. "Applying stakeholder theory to analyze corporate environmental performance," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 15(2), pages 164-184, April.
    19. Yang Stephanie Liu & Xiaoyan Zhou & Jessica Yang & Andreas Hoepner, 2016. "Corporate Carbon Emission and Financial Performance: Does Carbon Disclosure Mediate the Relationship in the UK?," ICMA Centre Discussion Papers in Finance icma-dp2016-03, Henley Business School, University of Reading.
    20. Jose-Manuel Prado-Lorenzo & Isabel-Maria Garcia-Sanchez, 2010. "The Role of the Board of Directors in Disseminating Relevant Information on Greenhouse Gases," Journal of Business Ethics, Springer, vol. 97(3), pages 391-424, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:arapps:v:15:y:2007:i:2:p:185-199. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.