Environmental disclosure quality: examining the impact of the stock exchange of Malaysia’s listing requirements

2015 ◽  
Vol 11 (4) ◽  
pp. 904-922 ◽  
Author(s):  
A.H. Fatima ◽  
Norhayati Abdullah ◽  
Maliah Sulaiman
Keyword(s):  
Stock Exchange ◽  
Listed Companies ◽  
Mandatory Reporting ◽  
Annual Reports ◽  
Disclosure Quality ◽  
Environmental Reporting ◽  
Environmental Disclosure ◽  
Content Type ◽  
Environmentally Sensitive

Purpose – The purpose of this study is to investigate the environmental disclosure (ED) quality of public-listed companies (PLCs) in environmentally sensitive industries (ESI) in Malaysia in 2005 and 2009 (two years before and two years after the mandatory corporate social responsibility (CSR) requirement of Bursa Malaysia (BM)). BM (The Stock Exchange of Malaysia) has made CSR, including ED in annual reports mandatory since 2007. This study compares environmental reporting (ER) before and after the 2007 mandatory reporting requirement to determine if this command and control mechanism has had any effect on the quality of ED. Design/methodology/approach – The quality of ED was measured using a disclosure quality index adapted from various prior studies. The index consists of a total of 46 disclosure items grouped into 9 categories. Content analysis was utilized to extract data from the annual reports of 164 PLCs in ESI. Findings – Overall, the quality of ED improved in 2009 from that of 2005. More importantly, companies disclosed more quantitative environmental information in 2009 than in 2005. However, the average quality of ED was still low in 2009 compared to the overall potential score. Results provide some support for legitimacy as well as institutional theories. Research limitations/implications – The sample of the study consisted of listed companies in ESI only; the results cannot be generalized to other companies in non-environmentally sensitive sectors. Practical implications – Prior studies that used data before the mandatory CSR requirement by BM found ED in annual reports mainly declarative in nature, generally low on quality and with little quantifiable data. The results of the present study provide evidence of the positive impact of mandatory environmental reporting on ED quality. Originality/value – The use of a multi-theoretical perspective may offer a more meaningful explanation of ER behavior in Malaysia. The results of the study would provide the impetus for regulatory agencies in developing countries to perhaps consider legislating ER. The findings provide some evidence to support the influence of legitimacy and institutional factors behind improved ED of Malaysian PLCs. This outcome exhibits a positive influence on the government efforts in promoting sustainability. Finally, the study contributes to present a more up-to-date account of environmental commitment undertaken by Malaysian corporations through their environmental reporting, after the CSR mandatory listing requirement took effect in 2007.

Empirical investigations on boards, business characteristics, human capital and environmental reporting

2013 ◽  
Vol 9 (4) ◽  
pp. 534-553 ◽  
Author(s):  
Roshima Said ◽  
Noorain Omar ◽  
Wan Nailah Abdullah
Keyword(s):  
Human Capital ◽  
Boards Of Directors ◽  
Listed Companies ◽  
Annual Reports ◽  
Firm Characteristics ◽  
Environmental Reporting ◽  
Environmental Disclosure ◽  
Content Type ◽  
Board Characteristics ◽  
Industry Type

Purpose – The objectives of this paper are to examine the level of environmental disclosure in annual reports made by Malaysian public listed companies for the year ended 2009, and to investigate whether there are any relationships between board characteristics (board size and board independence), firm characteristics (business type) and human capital characteristics (age, knowledge background and proportion of female directors) and environmental disclosure in Malaysian public listed companies' annual reports for the year ended 2009. Design/methodology/approach – The study constructs the environmental disclosure index with 11 disclosure themes based on research by Sharifah et al. to determine the environmental disclosure level. The study uses content analysis to find the environmental disclosure items and constructs an environmental disclosure index from the companies' annual reports. Hierarchical regression analysis is used to examine the relationships between the environmental disclosure index and board characteristics (board size and board independence), firm characteristics (business type) and human capital characteristics (age, knowledge background and proportion of female directors). Findings – The results of the study reveal that there is a significant relationship between the existence of an independent non-executive chairman, the chairperson's age, the existence of a CEO with a law background and the industry type with the extent of environmental disclosure. The industry type is found to be the most significant variable that influences the level of environmental disclosure in Malaysian public listed companies for the year ended 2009. Research limitations/implications – The findings are limited to Malaysian public listed companies for the year January to December 2009. The source of the data used in this study is companies' annual reports only. This study has several implications that may apply in many countries, irrespective of whether they are developing or developed countries. First, it provides strong evidence to show that boards of directors and human capital are significant variables in the extent of disclosure. Second, it is useful to managers, especially to boards of directors in Malaysia, in identifying board characteristics and human capital characteristics that could improve companies' environmental activities; these could be disclosed in the interest of stakeholders and the public's environmental concern. Third, this study can also be used as an initial step for companies in to be involved in environmental activities. Prior studies have proved that these activities could enhance companies' image and reputation and could offer financial benefits to the business. Originality/value – The study extends the previous studies by the inclusion of human capital characteristics as a factor that influences environmental reporting in Malaysia. This study has demonstrated that to mitigate the agency problems between firms and shareholders, society and stakeholders, and particularly environmental impact, the inclusion of human capital characteristics as an indicator may help to reduce expected costs and negative impacts on firm value, and may also demonstrate to society and the company's stakeholders that individual firms are doing their part to help solve society's social and environmental problems through additional disclosures.

Responding to “Discrediting” Events: Annual Report Disclosure Responses to Environmental Fines

2002 ◽  
Vol 2 (1) ◽  
pp. 22-40 ◽  
Author(s):  
Hussein Warsame ◽  
Cynthia V. Simmons ◽  
Dean Neu
Keyword(s):  
Impression Management ◽  
Annual Report ◽  
Annual Reports ◽  
Matched Pair ◽  
Disclosure Quality ◽  
Publicly Traded ◽  
Environmental Disclosure ◽  
Environmental Disclosures ◽  
Disclosure Responses

In this study we consider how a discrediting event such as an environmental fine influences the quality of environmental disclosures in subsequent annual reports. Starting from prior work in the areas of impression management along with environmental and social responsibility disclosures, we propose that environmental disclosures provide organizations with a method of “managing” such discrediting events. Using a matched-pair sample of publicly traded Canadian companies that have been subject to environmental fines and those that have not; we analyze changes in pre-fine and post-fine environmental disclosure quality. After controlling for firm-specific characteristics, the provided results are consistent with this explanation.

scholarly journals The Board Faultlines and Corporate Disclosure Quality: Based on Big Data Samples and Economic Model

2021 ◽  
Vol 251 ◽  
pp. 01043
Author(s):  
Qian Xing
Keyword(s):  
Big Data ◽  
Economic Model ◽  
Information Disclosure ◽  
Stock Exchange ◽  
Listed Companies ◽  
Corporate Disclosure ◽  
Disclosure Quality ◽  
Research Findings ◽  
The Impact

This article uses the selected data listed companies in Shenzhen Stock Exchange from 2008 to 2018 as big data samples to empirically study the impact of the board faultlines on corporate disclosure quality. Through statistical analysis and economic model, it transforms qualitative questions into quantitative questions. The results of the study show that the existence of the board faultlines will reduce the quality of information disclosure of listed companies. After a series of robustness tests, the above research findings are still robust.

The relationship between environmental disclosure quality and earnings quality: a panel study of an emerging market

2019 ◽  
Vol 13 (2) ◽  
pp. 326-347 ◽  
Author(s):  
Mohammad Alipour ◽  
Mehrdad Ghanbari ◽  
Babak Jamshidinavid ◽  
Aliasghar Taherabadi
Keyword(s):  
Emerging Market ◽  
Earnings Quality ◽  
Panel Study ◽  
Disclosure Quality ◽  
Environmental Reporting ◽  
Environmental Disclosure ◽  
Theoretical Frameworks ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the association between corporate environmental disclosure quality (EDQ) and earnings quality (EQ). Design/methodology/approach The paper uses earnings persistence and accruals quality as a measures of EQ. The paper also uses panel data regression to examine the association between EDQ and EQ for a sample of 107 Iran non-financial firms. Two different theoretical frameworks are used to clarify whether and to what extent an association may exist as an explicit relationship between EDQ and EQ. Findings After controlling for several firm-specific characteristics, the results show that between 2011 and 2016, there has been a significant positive relationship between EDQ and EQ. Practical implications This study sheds light on the relevance of regulating corporate reporting within a setting where companies are already voluntarily reporting on environmental information. Findings have implications for policymakers who have mandated or considering mandating environmental reporting. To the policymakers, in particular, this study highlights the need for incorporating, within the listing rules, minimum requirements in relation to the nature and content of environmental reports. Social implications The findings have implications for stakeholders in terms of effective information quality. The findings are important as more environmentally responsible firms may provide higher quality, more reliable and more transparent information to meet the ethical expectations of stakeholders. Originality/value This is the first study in Iran that considered the impact of EDQ on EQ. This study contributes to the literature on the relationship between EDQ and EQ by showing that the EDQ in Iran is associated with the EQ.

The longitudinal study of sufficiency economy philosophy reporting of listed companies in the Stock Exchange of Thailand

2019 ◽  
Vol 11 (2) ◽  
pp. 187-206
Author(s):  
Muttanachai Suttipun
Keyword(s):  
Longitudinal Study ◽  
Stock Exchange ◽  
Country Of Origin ◽  
Listed Companies ◽  
Annual Reports ◽  
Average Score ◽  
Content Type ◽  
Significant Difference ◽  
Stock Exchange Of Thailand ◽  
Sufficiency Economy Philosophy

Purpose The purpose of this paper is to investigate the extent and pattern of the sufficiency economy philosophy (SEP) reporting of listed companies from the Stock Exchange of Thailand (SET) between 2012 and 2016, and to compare the SEP scores of reporting in the companies’ corporate annual reports during the period studied and between four groups of interest, based on ownership status, country of origin of company, type of auditor and type of industry. Design/methodology/approach Listed companies of the SET were used as the population, whereas a sample of 70 firms was investigated in the study. Content analysis by checklist was used to quantify the extent and pattern of SEP reporting in annual reports. Findings The results showed that the average score for SEP reporting was 44.28 out of a possible 64 categories of reporting included in the checklist. Moreover, there was a significant increase in the SEP reporting score during the period studied. The results also indicated that there was a significant difference in the SEP reporting scores between groups, based on country of origin, auditor type and industry type. Originality/value As the first longitudinal study of SEP reporting in Thailand, the study demonstrated the effective rule of SET to Thai listed companies providing higher voluntary information reporting during period being study.

scholarly journals Determinants of Environmental Disclosure in Thai Corporate Annual Reports

2012 ◽  
Vol 2 (1) ◽  
pp. 99 ◽  
Author(s):  
Muttanachai Suttipun ◽  
Patricia Stanton
Keyword(s):  
Information Disclosure ◽  
Stock Exchange ◽  
Developed Countries ◽  
Environmental Information ◽  
Annual Reports ◽  
Environmental Reporting ◽  
Environmental Disclosure ◽  
Industry Group ◽  
Common Location ◽  
Simple Sampling

This study investigated the extent and content of environmental information disclosure provided in the annual reports of companies listed on the Stock Exchange of Thailand (SET), and tested whether there were any relationships between the amount of environmental disclosure and a number of company characteristics used in previous studies conducted in more developed countries. By using a simple sampling method, 75 listed companies were selected for inclusion in the study based on their 2007 annual reports. The findings indicate that 62 companies (83%) provided environmental information in their annual reports. Companies in the resources industry group made the most disclosure of environmental information, while the least disclosure was made by companies in the agricultural and food industries group. The most common location of environmental reporting in annual reports was under the topic of corporate governance. The most common themes of disclosures were environmental policy, environmental activities, and waste management. There was a positive relationship between the amount of environmental disclosures and size of company.

Impact of corporate characteristics on human resource disclosures

2016 ◽  
Vol 24 (4) ◽  
pp. 390-425 ◽  
Author(s):  
Surinder Kaur ◽  
Venkat A. Raman ◽  
Monica Singhania
Keyword(s):  
Regression Analysis ◽  
Human Resource ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Listed Companies ◽  
Annual Reports ◽  
Cross Sectional ◽  
Content Type ◽  
Independent Variables ◽  
Market Capitalisation

Purpose Human resource (HR) disclosures are voluntary in nature in most countries including India. The voluntary nature of HR disclosures results in discrepancy in the HR disclosure practices across companies and industries. The purpose of this paper is to examine the extent of HR disclosures in annual reports of Indian listed companies and to identify their determinants in a three stage analysis. Design/methodology/approach In the first stage a 16 item human resource disclosure index (HRDI) has been constructed for the set of CNX 200 companies listed on National Stock Exchange. Thereafter the effect of various independent variables on HRDI is analysed descriptively. Finally in the third stage HRDI has been regressed against the independent variables using regression analysis technique to identify key determinants of HRDI. Findings The research reveals that there is high variation among sample companies as regard HRDI. The results of descriptive analysis, correlation analysis and multivariate regression analysis establish that government’s participation in ownership and market capitalisation has positive significant effect on HRDI at 1 per cent, presence of separate HR directors committee, presence of more independent directors on board at 5 per cent and cross-list America and profit after tax at 10 per cent level. Implicitly HRDI is positively affected by size of company as measured by market capitalisation. Though contrary to expectations, other variables leverage, number of employees, assets, ownership concentration, type of auditor, age, complexity of business structure, employee expense to total operating expense ratio, industry affiliation, foreign investment and proportion of non-executive directors on board are found to have moderate though insignificant influence on HRDI. Research limitations/implications Cross-sectional design, dependence on annual reports as a primary document for disclosure and subjectivity in HRDI construction are the main limitations of the research. A longitudinal study may be carried to study the pattern of HR disclosures in future. Weighted ranking of different items of disclosures may be studied to improve the understanding of extent of disclosures. Practical implications The HRDI as constructed in the research may be used as a benchmark by companies to improve their HR disclosures. It can also be used by accounting bodies and company regulators while deciding about standards regarding HR disclosures. Investors can also use HR disclosures made by a company as a basis to understand its financial standing and future potentials. Originality/value The study adds to the existing literature by developing 16 item HRDI to measure the extent of disclosures by listed companies in India and thereafter by including some new propositions in the determinants of HRDI have never been tested in the existing studies. These propositions are government’s participation in ownership, separate HR committee of directors, board composition and foreign activity. These propositions have been empirically validated in this research except for foreign activity.

Measuring performance in corporate environmental reporting in Nigeria

2020 ◽  
Vol 24 (2) ◽  
pp. 183-195
Author(s):  
Oluwamayowa Olalekan Iredele
Keyword(s):  
Firm Size ◽  
Stock Exchange ◽  
Environmental Information ◽  
Annual Reports ◽  
Current Status ◽  
Multiple Sources ◽  
Environmental Reporting ◽  
Content Type ◽  
Sustainability Reports ◽  
Corporate Environmental Reporting

Purpose The purpose of this study is to measure the current level of corporate environmental reporting (CER) in the developing economy of Nigeria. This is with a view to drive the effort of firms towards improving on the present practice. An attempt is made to also determine the extent to which the level of CER differs on account of firm characteristics. Design/methodology/approach The study used data for the top 40 companies on the Nigerian stock exchange as of 31 December 2017 based on market capitalization. The annual reports, company website and sustainability reports were the major sources of data. The paper used descriptive statistics and one-way analysis of variance to analyse data. Findings Despite the attempt to explore multiple sources in obtaining environmental information, empirical evidence from the present study confirms that the level of environmental reporting is low; most companies report environmental issues through the website. It further found an association between CER and firm size. Practical implications The findings will be of interest to policymakers and regulators on the need to regulate environmental reporting. Thus, motivating firms towards better environmental performance in Nigeria. Originality/value The paper extends environmental reporting research in Nigeria beyond the use of annual reports. It captured environmental information reported through the website and sustainability reports. It provides information on the current status in terms of quality and content of information reported. Finally, it found that firm size is a contingent factor for CER in Nigeria.

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