Title: Do corporate governance mechanisms influence environmental reporting practices? Evidence from an emerging country
Authors: Haslinda Yusoff; Faizah Darus; Sharifah Aminah Ab Rahman
Addresses: Faculty of Accountancy, Universiti Teknologi MARA, Kampus Puncak Alam, 42300, Bandar Puncak Alam, Selangor, Malaysia ' Accounting Research Institute (ARI) and Faculty of Accountancy, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia ' Faculty of Accountancy, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia
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.
Keywords: environmental reporting; annual reports; content analysis; corporate governance; emerging economies; Malaysia; agency theory; board size; board independence; ownership concentration; female directorship; gender.
International Journal of Business Governance and Ethics, 2015 Vol.10 No.1, pp.76 - 96
Accepted: 01 Dec 2014
Published online: 02 Apr 2015 *