Do corporate governance mechanisms influence environmental reporting practices? Evidence from an emerging country. (1st January 2015)

• Record Type: Journal Article
• Authors: Yusoff, Haslinda; Darus, Faizah; Rahman, Sharifah Aminah Ab
• Is Part Of: International journal of business governance and ethics. Volume 10:Number 1(2015)
• Page Start: 76
• Page End: 96
• Publication Date: 2015-01-01
• Subjects: environmental reporting -- annual reports -- content analysis -- corporate governance -- emerging economies -- Malaysia -- agency theory -- board size -- board independence -- ownership concentration -- female directorship -- gender; 658.4
• DOI: 10.1504/IJBGE.2015.068686
• Languages: English
• ISSNs: 1477-9048

Abstract

This study seeks to examine the potential links between corporate governance mechanisms and environmental reporting practices from the perspective of agency theory. A content analysis has been conducted to gather relevant information from the annual reports of the 100 leading Malaysian public–listed companies covering a three–year period, i.e., from 2009 to 2011. The relationship between corporate governance mechanisms and environmental reporting practices is then tested using regression analysis. The results generally indicate that there was an improved trend in environmental reporting among the companies over the three–year period and offer preliminary insights into the influence of corporate governance on environmental reporting. A positive significant relationship was found between board size and environmental reporting. Other corporate governance mechanisms including board independence, ownership concentration and female directorship were not associated with the environmental reporting practices of companies. The findings provide new insights into the potential strategies in relation to corporate governance towards encouraging greater environmental reporting from the perspective of an emerging country.