An analysis of corporate governance factors influencing sustainability reporting disclosure in the Malaysian agro-industry

Nurfara Hasyikin Hanapi, Waleed M. Alahdal, Hafiza Aishah Hashim, Zalailah Salleh and Muskan Sahu

Asian Journal of Accounting Research, 2025, vol. 11, issue 3, 304-321

Abstract: PurposeThe effects of corporate governance characteristics such as board independence, board gender diversity, board experience and sustainability committee on sustainability reporting are examined in the context of Malaysian agro-industry companies.Design/methodology/approachA fixed effects regression with Driscoll-Kraay standard error and generalized method of moments (GMM) analysis was employed in this study to analyze the sustainability reporting of 56 publicly listed agro-industry companies over eight years (2016–2023) using a newly developed sustainability reporting index (SRI).FindingsThe findings suggest that having a sustainability committee is vital in enhancing sustainability reporting, as demonstrated by its strong positive relationship with sustainability reporting disclosure. Additionally, board gender diversity and board experience show a significant positive relationship with sustainability reporting, whereas board independence shows a negative relationship.Practical implicationsThe observations from this study provide important perspectives on the significance of sustainability committees in companies, diversity and experience with sustainability-related board of directors' appointments.Social implicationsThe findings provide practical insights for corporate governance stakeholders and policymakers in striving to enhance clarity as well as responsibility in sustainability reporting.Originality/valueThe newly constructed SRI enhances the ability to evaluate sustainability practices, making a meaningful contribution to the literature by offering a robust, multidimensional measure.

Keywords: Corporate governance; Agriculture companies; Sustainability reporting index; Malaysia; Sustainability committee; GMM (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ajarpp:ajar-06-2025-0267

DOI: 10.1108/AJAR-06-2025-0267

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