Unveiling the antecedents and the outcome of materiality disclosure: insights from sustainability reporting of Malaysian public listed companies

IF 3.5 Q1 BUSINESS, FINANCE
Sie-Bing Ngu, Azlan Amran
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引用次数: 0

Abstract

Purpose

The materiality principle is one of the top trends in sustainability reporting globally. Stakeholders have focused on the principle of materiality because of its vital importance in the context of sustainability. Materiality serves as a content-selection principle for determining the most significant sustainability matters to be included in sustainability reports. This has made reports more relevant for various stakeholders. Using the resource-based view and stakeholder theory, this paper aims to examine and uncover the antecedents and outcome of materiality disclosure in sustainability reporting.

Design/methodology/approach

To measure the extent of materiality disclosure, a content analysis was performed on the corporate reports of the largest listed companies in Malaysia. The relationships among the variables under investigation were examined using the partial least squares structural equation modelling technique.

Findings

While the results show that board activity, board independence and board size play significant roles as antecedents of materiality disclosure, this is not so with nationality diversity and gender diversity. In addition, the results have shown that the outcome of materiality disclosure is not significantly linked to corporate financial performance. The results show that normative stakeholder considerations are the primary motivating factor behind corporate sustainability reporting in Malaysia.

Practical implications

These results are of great interest to regulators, stakeholders, investors and companies alike. Enhancing materiality disclosure in sustainability reports can help in the transition to sustainable development and the successful achievement of the United Nations sustainable development goals.

Originality/value

To the best of the authors’ knowledge, this is the first empirical study to examine the interplay between board diversity and materiality disclosure, along with their connections to corporate financial performance.

揭示实质性信息披露的前因后果:从马来西亚上市公司的可持续发展报告中获得的启示
目的 重要性原则是全球可持续发展报告的主要趋势之一。利益相关者之所以关注重要性原则,是因为它在可持续发展方面至关重要。重要性原则是一项内容选择原则,用于确定可持续发展报告中应包含的最重要的可持续发展事项。这使得报告与各利益相关者更加相关。本文采用基于资源的观点和利益相关者理论,旨在研究和揭示可持续发展报告中重要性披露的前因和结果。研究结果表明,董事会活动、董事会独立性和董事会规模在实质性信息披露中发挥着重要作用,但国籍多样性和性别多样性却并非如此。此外,研究结果还表明,实质性信息披露的结果与公司财务业绩没有显著联系。结果表明,规范性利益相关者考虑因素是马来西亚企业可持续发展报告背后的主要激励因素。加强可持续发展报告中的实质性披露有助于向可持续发展过渡,并成功实现联合国的可持续发展目标。 原创性/价值 据作者所知,这是第一项研究董事会多样性和实质性披露之间的相互作用以及它们与企业财务业绩之间联系的实证研究。
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来源期刊
Meditari Accountancy Research
Meditari Accountancy Research BUSINESS, FINANCE-
CiteScore
7.80
自引率
14.30%
发文量
66
期刊介绍: Meditari Accountancy Research (MEDAR). MEDAR takes its name from the Latin for constantly pondering, suggesting a journey towards a better understanding of accountancy related matters through research. Innovative and interdisciplinary approaches are encouraged. The journal is a double blind refereed publication that welcomes manuscripts using diverse research methods that address a wide range of accountancy related topics, where the terms accountancy and accounting are interpreted broadly. Manuscripts should be theoretically underpinned. Topics may include, but are not limited to: Auditing, Financial reporting, Impact of accounting on organizations, Impact of accounting on capital markets, Impact of accounting on individuals, Management accounting, Public sector accounting, Regulation of the profession, Risk management, Social and environmental disclosure, Impact of taxation on society, Accounting education, Accounting ethics.
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