Does Good Corporate Governance Lead to Better Sustainability Reporting? An Analysis Using Structural Equation Modeling

AbstractThis paper examines the impact of good corporate governance (CG) on the sustainability disclosure of 100 public listed companies in Malaysia from the perspective of agency theory. The data was analysed using Structural Equation Modelling technique of Partial Least Squares. The findings from the study indicate that board size, professionalism and board designation had a significant impact on sustainability disclosure. However, board independence and board ownership were not significant in motivating sustainability disclosure. The findings from this study provide enhance understanding of the determinants of sustainability reporting and confirm the appropriateness of agency theory in examining studies of this nature

Assurance of CSR and Sustainability Reports: Empirical Evidence from an Emerging Economy

In tandem with the evolution of reporting, this paper highlights the extent to which the content of corporate social responsibility (CSR) and sustainability assurance reports in Malaysia addressed the key elements of the requirements of the ISAE3000 assurance standard. A content analysis of the assurance statements of eight (8) public-listed companies in Malaysia for the year 2010 revealed some areas of concern with regards to the assurance statements provided. The findings from the study revealed some variability in the assurance reports provided. However, in terms of the nature of work undertaken, the findings from the study revealed that Malaysian assurors performed well in all three validation processes; validation of data in the report, validation of data collection and in the validation of achievement targets. The findings also revealed that Malaysian assurance providers were engaging with the stakeholders during the assurance process. Keywords: Assurance, Sustainability, Corporate Social Responsibility, Standard, Malaysi

Does social risk management matter? Influencing factors and their link to firms’ financial performances / Tamoi Janggu … [et al.]

This article deals with the growing pressures and demands for emerging risk reporting that may help interested users assess the importance of social risk management for sustainable development. The objectives of this study were to examine the influence of individual and institutional ownership and stakeholders on social risk disclosures and the joint effects on firms’ financial performances. Content analyses on the 2013 and 2014 annual reports of all plantation sector companies were carried out and analyzed using partial least square (SEM_PLS) software version 3.2. Based on the tests, we found significant relationships between institutional ownership and the number of stakeholders with social risk disclosures. However, there were no significant relationship between individual ownership and social risk disclosures. In addition, we found significant relationships between social risks and firms’ financial performances. These findings reveal that institutional shareholders and the number of stakeholders had a significant influence in deciding the disclosure of social risk information. Interestingly social risk information was found to be statistically significant on firms’ financial performance as measured by firms’ net profits. This paper, therefore, endorses the growing demand to fully embed social risk management in companies’ operations by both institutional shareholders and stakeholders in general

Does social risk management matter? influencing factors and their link to firms' financial performances / Tamoi Janggu ... [et al.]

This article deals with the growing pressures and demands for emerging risk reporting that may help interested users assess the importance of social risk management for sustainable development. The objectives of this study were to examine the influence of individual and institutional ownership and stakeholders on social risk disclosures and the joint effects on firms’ financial performances. A content analysis on the 2013 and 2014 annual reports of all plantation companies was carried out and analyzed using partial least square (SEM_PLS) software version 3.2. Based on the tests, we found significant relationships between institutional ownership and the number of stakeholders with social risk disclosures. However, there were no significant relationships between individual ownership and social risk disclosures. In addition, we found significant relationships between social risks and firms’ financial performances. These findings revealed that institutional shareholders and the number of stakeholders had a significant influence in deciding the disclosure of social risk information. Interestingly to note that social risk information was found to be statistically significant on firms’ financial performance as measured by the firms’ net profits. This paper, therefore, endorsed the growing demand to fully embed social risk management in companies’ operations by both institutional shareholders and stakeholders in general

Environmental risk disclosure practice in Malaysia: an emphasis on the plantation industry / Haslinda Yusoff … [et al.]

This study aimed to investigate the environmental-related risk management practices via disclosures of publicly listed companies in Malaysia. A content analysis of annual and sustainability reports from 2012 to 2014 of all companies in the plantation industry was carried out. Using a disclosure rating index, the quantity and quality of the environmental-related risks disclosures was examined. The results reveal that the quantity and quality of disclosures are rather low and minimal; being in the form of short statements and a brief explanation of information. “Pollution and abatement commitment” is found to be the most disclosed category and information, followed by “environmental conservation-energy”, while, “pollution and abatement–noise outdoor” is the least disclosed one. Generally, a majority of the disclosures showed a decreasing trend. These findings indicate that typically the plantation companies in Malaysia gave minimal attention to environmental risk reporting henceforth signifying that disclosure practice is not viewed as critical to their sustainability agenda and value creation