Does Quality of Non-Financial Information Disclosure Influence Firmsâ Profitability in Malaysia?

Mohamad, Zam Zuriyati; Salleh, Hatijah Mohamed; Ismail, Nur Diyana; Chek, Ibrahim Tamby

doi:10.6007/ijarafms/v4-i4/1360

Cited by 9 publications

(9 citation statements)

References 41 publications

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“…To convert the qualitative information into quantitative scores, we follow the CSR dimension disclosure-scoring method of Mohamad et al (2014) and Saleh et al (2011). Each different dimension of CSR sub-item has been awarded a range of scores, from one to three based on the quality and amount of information disclosed.…”

Section: Measurements Of Corporate Social Responsibilitymentioning

confidence: 99%

Doing good does you good? The financial impact of individual CSR dimensions: A Malaysian context

Tan

Pidani

et al. 2021

SRJ

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Purpose Although corporate social responsibility–corporate financial performance (CSR-CFP) research topics have been widely investigated, previous research has yet to examine the relationship between the specific dimension of CSR and CFP among Malaysian public-listed companies. Through literature review, it has been found that the CSR-CFP studies conducted in Malaysia have omitted the role of workplace diversity dimension in contribution to CFP. Failure to consider this variable may risk misrepresenting the relationship between CSR and CFP, thereby preclude consensus on the direction of the relationship between the variables. The purpose of this study is to investigate the relationship between individual CSR dimensions and CFP. Design Methodology Approach By using the CSR dimension disclosure-scoring method and cross-sectional data analysis, this research has conducted a content analysis on annual reports of the sample companies to evaluate the influence of CSR practices on companies’ profitability during 2015. Findings The results show that companies displaying CSR behavior are associated with higher CFP. That is to say, there is a positive relationship between CSR and CFP. However, the result has further revealed that the five CSR dimensions in isolation would differently associate with the two proxies of CFP. Originality Value To the best of the authors’ knowledge, this is the first study in Malaysia that considers workplace diversity issues as one of the dimensions of CSR. The findings will thus bring new insights into CSR application in Malaysia and its association with the CFP.

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Section: Measurements Of Corporate Social Responsibilitymentioning

confidence: 99%

Doing good does you good? The financial impact of individual CSR dimensions: A Malaysian context

Tan

Pidani

et al. 2021

SRJ

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“…Hasil penelitian menyatakan bahwa pengungkapan tata kelola perusahaan di bank Islami di Indonesia tidak berpengaruh terhadap kinerja bank. Mohamad, et al (2014) menyatakan bahwa pengungkapan tata kelola perusahaan memiliki pengaruh tertinggi terhadap kinerja perusahaan bila dibandingkan dengan pengungkapan CSR, pengungkapan modal intelektual, dan pengungkapan manajemen risiko. Satu hal yang perlu diperhatikan bahwa perusahaan dengan tingkat pengungkapan tata kelola perusahaan yang tinggi belum mengindikasikan bahwa perusahaan tersebut secara aktual mengikuti pedoman tata kelola perusahaan dengan semangat yang tinggi (Tariq & Abbas, 2013) Berdasarkan latar belakang dan penelitian terdahulu, maka terbentuk kerangka konseptual untuk menguji pengaruh pengungkapan yang dilakukan oleh perusahaan terhadap protibalitas dam harga saham seperti pada gambar dibawah ini.…”

Section: Landasan Teori Pengungkapan Gcg Dan Profitabilitasunclassified

“…Pengaruh GCG terhadap ROA Pengungkapan tata kelola perusahaan memiliki pengaruh positif dan signifikan terhadap ROA sebelum dan sesudah tahun 2014. Hasil ini sejalan dengan penelitian Mohamad et al (2014), namun berlawanan dengan penelitian Harisa et al (2019). Hal ini menyatakan bahwa apa diungkapkan oleh perusahaan mengenai mekanisme tata kelola yang berjalan di perusahaan tersebut mampu meningkatkan kepercayaan masyarakat.…”

Section: Pembahasanunclassified

Pengungkapan Perusahaan: Finansial atau Non-Finansial Studi Kasus pada Emiten Syariah di Indonesia

Syarief¹

2020

JASET

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This study investigates how investors' perceptions of disclosures made by companies. The disclosure referred to non-financial exposures represented by corporate governance disclosures (GCGs) and financial disclosures denoted by ROA and ROE. The stock price is a proxy for investor perceptions. Furthermore, this study also tries to see whether the regulations issued by the Financial Services Authority have an economic impact on the company that implements these rules. This research using WarpPLS as a tool to find out the influence of GCGs on ROA and ROE, and on Share Prices, using path analysis before and after 2014. The results of the study state that GCGs has a positive and significant effect on ROA before and after 2014. GCGs does not affect ROE before 2014, but it had a significant positive impact on ROE after 2014. GCGs did not affect stock prices before and after 2014. ROA had a significant effect on stock prices before 2014, did not affect stock prices after 2014. ROE does not influence the Share Price before and after 2014. The conclusion is that the investors on sharia stock still acknowledge that financial information is more decisive for buying shares of sharia stocks compared to non-financial information, and non-financial disclosures made by the company, adding to the burden of the company. The rules issued by OJK relating to disclosure of corporate governance do not appear to have had an economic effect on Islamic issuers in Indonesia.

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“…Companies with higher earnings have a greater tendency to reveal good news (Cormier et al, 2011). The studies have used return on assets (ROA) as a measure of profitability, as seen in Brammer and Pavelin, ( 2008), Cormier et al (2011), Galani et al (2011) and Mohamad (2014).…”

Section: Variables Descriptionmentioning

confidence: 99%

Impression management using graphical resources in Brazilian company reports

Silva

Rodrigues

Silva

2019

IJAF

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The aim of this study is to investigate the evidence of impression management in terms of selectivity or improved presentation in the graphs and charts used by companies. The reports of 180 Brazilian companies between 1997 and 2014 were analysed. The variables tested were: company size, profitability, age, variation in results, report size and publication period. The results indicated that there is a significantly positive relationship between financial performance and the total amount of graphs and charts, in particular those with key financial information (net income, net revenue and dividends) and those with improved or enhanced presentation. This is a sign of impression management in the reports analysed. It was verified a relationship between the company's age and the low amount of graphs and charts used by the company during the initial years of the analysis period to disclose financial information in their reports.

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Does Quality of Non-Financial Information Disclosure Influence Firmsâ Profitability in Malaysia?

Cited by 9 publications

References 41 publications

Doing good does you good? The financial impact of individual CSR dimensions: A Malaysian context

Doing good does you good? The financial impact of individual CSR dimensions: A Malaysian context

Pengungkapan Perusahaan: Finansial atau Non-Finansial Studi Kasus pada Emiten Syariah di Indonesia

Impression management using graphical resources in Brazilian company reports

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Does Quality of Non-Financial Information Disclosure Influence Firmsâ Profitability in Malaysia?

Cited by 9 publications

References 41 publications

Doing good does you good? The financial impact of individual CSR dimensions: A Malaysian context

Doing good does you good? The financial impact of individual CSR dimensions: A Malaysian context

Pengungkapan Perusahaan: Finansial atau Non-Finansial Studi Kasus pada Emiten Syariah di Indonesia

Impression management using graphical resources in Brazilian company reports

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Product

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Does Quality of Non-Financial Information Disclosure Influence Firmsâ Profitability in Malaysia?