Determinants of environmental reporting quality in Malaysia

Sulaiman, Maliah and Abdullah, Norhayati and Fatima, Abdul Hamid (2014) Determinants of environmental reporting quality in Malaysia. International Journal of Economics, Management and Accounting, 22 (1). pp. 63-90. ISSN 0128-006

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Abstract

The study examines the relationship between share ownership distribution, profitability, firm size and leverage with the quality of environmental disclosure in annual reports in 2009, two years after Malaysia made corporate social responsibility disclosure mandatory for all listed companies. Three theories; legitimacy, resource based view and information provided the theoretical underpinnings of the study. A content analysis of the annual report of 164 companies in the environmentally sensitive industries (ESI) was undertaken. Disclosure quality was measured using a self-developed index adapted from prior studies. The findings revealed a significant positive association between firm size and leverage with the quality of environmental reporting, thus providing the support for legitimacy theory. Given that share ownership distribution and profitability had no significant relationship with the quality of environmental reporting, the use of resource based view and information cost theories did not provide any support in explaining environmental reporting behavior of companies in the environmentally sensitive industries in Malaysia.

Item Type:	Article (Journal)
Additional Information:	1445/41500
Uncontrolled Keywords:	Environmental disclosure, Determinants, Legitimacy, Resource based view, Information cost
Subjects:	H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5601 Accounting. Bookkeeping
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User:	Dr Fatima Hamid
Date Deposited:	13 Feb 2015 09:19
Last Modified:	28 Aug 2015 11:26
URI:	http://irep.iium.edu.my/id/eprint/41500

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