Determinants of Sustainability Disclosure Quality among Plantation Companies in Malaysia

Abstract

This paper aims to examine the determinants of sustainability disclosure quality among plantation companies in Malaysia. Data analysis is based on all 44 listed plantation companies on Bursa Malaysia between 2016 and 2018. The study utilizes a content analysis adapted from the Global Reporting Initiative (GRI)—G4 guideline, Sustainability Accounting Standard Board guidelines, and Bursa Malaysia Guidelines 2018, to measure sustainability disclosure quality (SDQ). Results from ordinary least squares (OLS) regression analysis corrected for standard errors indicate that shariah-compliant status and internal mechanisms (board size, the presence of women directors, the existence of sustainability committees, and CEOs with business knowledge) significantly improve SDQ. Firm size, firm age, leverage, growth, and Big 4 auditors also significantly improve SDQ. The study provides useful insights into the importance of women directors and the presence of sustainability committees towards SDQ. This study contributes to the discussion that internal mechanisms (board size, independent boards, women directors, sustainability committees) and firm characteristics (shariah compliant, family ownership, CEO ownership, foreign ownership) can increase sustainability reporting and disclosure quality. The measurement of SDQ is novel in Malaysian context even though the methodology is often used in the literature.

Do corporate environmental protection efforts reduce firm‐level operating risk? Evidence from a developing country

“…Corporate managers are therefore engaged in adopting good global practices and researching their internal processes to reduce their carbon footprint. This may also be the reason why the corporations have started publishing their sustainability information on their websites, through sustainability reports, and their annual reports, as reported by Abdul Latif et al (2023).…”

Prácticas sociales de RSE en empresas familiares. ¿Contribuyen a la sostenibilidad empresarial y los ODS 3, 4, 5 y 8? Una revisión sistemática de la literatura

“…En relación con el impacto de la RSE en la sostenibilidad de la empresa familiar, se muestran nueve artículos que indican la falta de claridad sobre resultados de la RSE asociados con la sostenibilidad organizacional (Chakrabarti, 2023; De las Heras-Rosas y Herrera, 2020; Mariani et al, 2021), y esto se asocia con las particularidades de la empresa familiar (Broccardo et al, 2019). Además, se señala que la divulgación no es suficiente para generar confianza y buena reputación para audiencias externas (Iannone, 2018;Wan-Hussin et al, 2021), pues se requieren procesos de medición que comprueben el impacto de las actividades en la solidez de la empresa (Abdul et al, 2023;Wan-Hussin et al, 2021;Zarefar et al, 2022) y es necesario generar indicadores clave y mayor investigación fundamentada para lograr identificar un efecto real de estas prácticas sobre la sostenibilidad de la empresa en un largo plazo (Iannone, 2018;Martins et al, 2022).…”

“…Para finalizar, se precisa la necesidad de procesos que comprueben el impacto de las prácticas de RSE en la solidez de la empresa y la contribución a los ODS a través de la creación de indicadores clave e investigación fundamentada en los negocios familiares y sus particularidades (Abdul et al, 2023;Wan-Hussin et al, 2021;Zarefar et al, 2022;Rumanko et al, 2021;García et al, 2021;Huang et al, 2021;Iannone, 2018;Martins et al, 2022).…”