Determinants of Sustainability Disclosure Quality among Plantation Companies in Malaysia

Rohaida Abdul Latif (), Kamarun Nisham Taufil Mohd, Hasnah Kamardin and Arifatul Husna Mohd Ariff
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Rohaida Abdul Latif: Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Sintok 06010, Malaysia
Kamarun Nisham Taufil Mohd: School of Economics, Finance and Banking, Universiti Utara Malaysia, Sintok 06010, Malaysia
Hasnah Kamardin: Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Sintok 06010, Malaysia
Arifatul Husna Mohd Ariff: Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Sintok 06010, Malaysia

Sustainability, 2023, vol. 15, issue 4, 1-23

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.

Keywords: sustainability disclosure quality (SDQ); corporate governance; CSR; board of directors; CEO; Global Reporting Initiative (GRI); Malaysia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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