Corporate Governance Towards Sustainability Performance Quality: A Case of Listed Firms in Malaysia
الباحث الأول:
Ali Noori Abdulzahra
الباحثين الآخرين:
Ghazwan Ayad Khalid Al-shiblawi 2, Hakeem Hammood Flayyih 3 * , Moses Elaigwu 4, Salau Olarinoye Abdulmalik 5, Hassnain Raghib Talab 6, Friday Audu 7
المجلة:
Journal of Information Systems Engineering and Management
تاريخ النشر:
30 أكتوبر، 2023
مختصر البحث:
ABSTRACT
Sustainable development according to the United Nations, listed firms globally now routinely provide sustainability data. However, there is not enough information on Sustainability Performance Quality (SPQ) in the majority of emerging econ…
ABSTRACT
Sustainable development according to the United Nations, listed firms globally now routinely provide sustainability data. However, there is not enough information on Sustainability Performance Quality (SPQ) in the majority of emerging economies, including Malaysia. The quality of sustainability performance is very important and considered by this study as it is key to investment or business decisions and relevant in the context of the study in terms of achieving sustainable development. This study looks at how the SPQ of the top 100 Malaysian- listed businesses is affected by factors connected with corporate governance (e.g., board meetings, board size, and board ethnic diversity). The Top 100 firms were considered as a result of their public visibility and impact on society. Utilizing 500 firm-year data, a longitudinal sample of 500 nonfinancial firms on the Bursa Malaysia for 2015-2019 is employed in this study. The findings from the analysis using the Fixed Effect estimation technique in panel regression demonstrated that ethnic diversity and board size have positive impacts on the SPQ of the chosen enterprises at 1% and 5% significant levels. However, board meetings have a significant but negative influence at a 5% level of significance. The descriptive study found that the average SPQ is 26%, which has to be improved despite the significant relationship pointing to a development in the calibre of sustainability disclosures. Bursa Malaysia's necessary regulatory improvements and an effective board might result in this outcome. In addition, the study poses to develop a policy for the firms, stakeholders, government, and regulators to rise the disclosure standard of corporate sustainability. Also, gaps are filled in the study by providing empirical evidence and new insights on the significance of board meetings, board ethnic diversity, and board size in Malaysian firms' sustainability disclosure – with the least attention to empirical research. Conclusively, if sustainable development must be achieved, sustainability practices become relevant as suggested by the United Nations and the Global Reporting Initiative.
