EconPapers    
Economics at your fingertips  
 

The irrelevance of R&D intensity in the ESG disclosure? Insights from top 10 listed companies on global Islamic indices

Muhammad Afi Ramadhan, Ratna Mulyany and Evi Mutia

Cogent Business & Management, 2023, vol. 10, issue 1, 2187332

Abstract: This study investigates the potential influence of several pertinent factors including R&D intensity, directors’ education, and firm size towards ESG disclosure. This study utilised samples from top 10 companies listed in 6 (six) different Global Islamic Indices with a three-year observation period (2017–2019) resulting in 99 observations. Global Islamic listed companies have rarely been studied in ESG-related issues. The pre-COVID-19 pandemic period was chosen to avoid the potential effects of pandemic on the subject of this study. Multiple linear regression analysis was employed to test the hypotheses. It was found that all the independent variables simultaneously influence the ESG disclosure, while partially directors’ education are influencing the variable, and both R&D intensity and firm size do not influence the ESG disclosure. Confirming the agency theory, it is argued that the board characteristics are important in predicting overall board performance in carrying out their monitoring responsibilities, in this case, monitoring and encouraging companies to disclose more ESG information in their sustainability reports. This study signifies the role of directors even within the Islamic listed companies that the more highly educated the members of the board, they will tend to disclose more ESG information on their sustainability reports. This study contributes to the existing ESG disclosure and sharia-based investing literature by utilizing global-based indices instead of local indices in Muslim-majority countries, mirroring the current uptrend in world-wide sharia investing and the call for companies to be more sustainable in doing their business.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1080/23311975.2023.2187332 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:oabmxx:v:10:y:2023:i:1:p:2187332

Ordering information: This journal article can be ordered from
http://cogentoa.tandfonline.com/journal/OABM20

DOI: 10.1080/23311975.2023.2187332

Access Statistics for this article

Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar

More articles in Cogent Business & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2025-03-20
Handle: RePEc:taf:oabmxx:v:10:y:2023:i:1:p:2187332