The Effect of the Board of Directors’ Characteristics on Corporate Sustainability Reporting
Kesan Ciri-Ciri Lembaga Pengarah Mengenai Pelaporan Berkelanjutan Korporat
Keywords:
Corporate governance, Board of directors’ characteristics, Corporate sustainability reportingAbstract
This paper explores the corporate sustainability reporting by Public listed companies of Bursa Malaysia. Specifically the objective is to examine the effect of board characteristics on corporate sustainability reporting (CSR) disclosure. This study postulates that board characteristics (board size, board independence, CEO duality, women director) influence the level of CSR. Development of research hypotheses are based on legitimacy theory. Sample consists of 260companies listed on the Main Board of Bursa Malaysia. Results show a positive significant association between board size, board independence and women director and CSR disclosure. Duality CEO has no significant association impact on CSRdisclosure among listed firms in Malaysia. This studysuggests the need for improving the current practice of corporate governance for public listed companies by focusing on the board of directors’characteristics. The findings of this study are useful for policy makers in evaluating thepresent corporate governance standards and whether these requirements are sufficient for users of CSR, such as investors in making investment decisions.
Kajian ini dilakukan bagi menguji kesan ciri-ciri ahli lembaga pengarah ke atas pelaporan kelestarian korporat oleh syarikat tersenarai di Malaysia. Kajian ini menjangkakan bahawa ciri ahli lembaga pengarah (saiz lembaga pengarah, kebebasan pengarah, CEO dua peranan, pengarah wanita) akan mempengaruhi pelaporan kelestarian korporat oleh syarikat tersenarai di Bursa Malaysia. Hipotesis dibangunkan berdasarkan teori legitimasi. Sampel kajian terdiri daripada 260buah syarikat tersenarai di Bursa Malaysia.Hasil kajian mendapati bahawa saiz lembaga pengarah, pengarah bebas dan pengarah wanita mempengaruhi pelaporan kelestarian korporat. Manakala CEO dua peranan didapati tidak mempengaruhi pelaporan kelestarian korporat oleh syarikat tersenarai di Malaysia.Kajian ini mencadangkan supaya terdapat penambah baikan dari segi tadbirurus korporat syarikat tersenarai di Malaysia terutama dari segi ciri-ciri lembaga pengarah. Hasil kajian adalah berguna kepada pembuat polisi dalam menilai standard tadbir urus dan adakah keperluan penyenaraian di Bursa Malaysia mencukupi bagi pengguna CSR terutama sekali pelabur dalam membuat keputusan pelaburan.
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