TY - JOUR
T1 - CSR disclosures and its determinants
T2 - Evidence from Malaysian government link companies
AU - Abd Rahman, Nor Hawani Wan
AU - Mohamed Zain, Mustaffa
AU - Yahaya Al-Haj, Norashfah Hanim Yaakop
PY - 2011
Y1 - 2011
N2 - Purpose: The main aim of this study is to assess the level of corporate social responsibility (CSR) disclosure of 44 government-linked companies (GLCs) listed on Bursa Malaysia and to ascertain the relationship of certain company characteristics; namely size, age, profitability and leverage on the total CSR disclosure from the year 2005 to 2006. Design/methodology/approach: Content analysis is deployed to determine CSR disclosure. A disclosure index consisting of 16 items was developed based on four general themes: human resource, marketplace, community and environment to assess the disclosure level. The relationship between company characteristics and total disclosure was examined using multiple linear regression analysis. Findings: The major finding of this study is that the theme of disclosure has shifted from human resource to marketplace. This is followed by human resource, community and, finally, environment. Ironically, companies are not only disclosing good news, but also bad/negative news. This study provides further evidence that is, to a certain extent, some GLCs have influenced other companies' practices to disclose CSR information. Company size was found to be positively significant associated with the total disclosure. The remaining variables were found to be insignificant in explaining the total disclosure. Originality/value: This is the first paper that looks into CSR activities, extent, themes and the determinants of CSR disclosure in the annual reports of Malaysian GLCs. The Malaysian Government, Bursa Saham, Security Commission and other relevant parties could take heed of the findings to further improve CSR awareness, practices and disclosures and quality in GLC.
AB - Purpose: The main aim of this study is to assess the level of corporate social responsibility (CSR) disclosure of 44 government-linked companies (GLCs) listed on Bursa Malaysia and to ascertain the relationship of certain company characteristics; namely size, age, profitability and leverage on the total CSR disclosure from the year 2005 to 2006. Design/methodology/approach: Content analysis is deployed to determine CSR disclosure. A disclosure index consisting of 16 items was developed based on four general themes: human resource, marketplace, community and environment to assess the disclosure level. The relationship between company characteristics and total disclosure was examined using multiple linear regression analysis. Findings: The major finding of this study is that the theme of disclosure has shifted from human resource to marketplace. This is followed by human resource, community and, finally, environment. Ironically, companies are not only disclosing good news, but also bad/negative news. This study provides further evidence that is, to a certain extent, some GLCs have influenced other companies' practices to disclose CSR information. Company size was found to be positively significant associated with the total disclosure. The remaining variables were found to be insignificant in explaining the total disclosure. Originality/value: This is the first paper that looks into CSR activities, extent, themes and the determinants of CSR disclosure in the annual reports of Malaysian GLCs. The Malaysian Government, Bursa Saham, Security Commission and other relevant parties could take heed of the findings to further improve CSR awareness, practices and disclosures and quality in GLC.
KW - Corporate social responsibility
KW - Disclosure
KW - Government agencies
KW - Malaysia
KW - Organizations
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U2 - 10.1108/17471111111141486
DO - 10.1108/17471111111141486
M3 - Article
AN - SCOPUS:79959625413
SN - 1747-1117
VL - 7
SP - 181
EP - 201
JO - Social Responsibility Journal
JF - Social Responsibility Journal
IS - 2
ER -