The effect of environmental disclosure practices on firm performance of malaysian listed firms | [Pakistan Journal of Life and Social Sciences • 2025]

Author(s):

1. Mohd Waliuddin Mohd Razali: Faculty Economics & Business, Universiti Malaysia Sarawak (UNIMAS), Malaysia; Faculty of Economics & Management, Universiti Kebangsaan Malaysia (UKM), Malaysia

2. Gam Jun Yee: Faculty Economics & Business, Universiti Malaysia Sarawak (UNIMAS), Malaysia

3. Mohd Firdaus bin Zakaria: Kolej Komuniti Bagan Serai, Malaysia

4. Rozaiha Ab Majid: Faculty of Accountancy, Universiti Teknologi MARA Melaka, Malaysia

5. Dg Junaidah Awang Jambol: Faculty of Social Sciences and Humanities, Universiti Malaysia Sabah, Malaysia

Abstract:

The lack of mandatory environmental disclosure guidelines for Malaysian public-listed firms leads to selective reporting, potentially resulting in stakeholder mistrust and uncertainty about the authenticity of the firms' environmental practices. The aim of this study is to assess the effect of environmental disclosure on financial performance. Sample of 428 public listed firms in Bursa Malaysia in year 2016 were used in this study. All data were collected from annual report and Osiris databased. The statistical evidences to conclude environmental disclosure has insignificant relationship with financial performance in term of economic value added (EVA), market value added (MVA), return on equity (ROE) and return on assets (ROA). If environmental disclosure does not influence financial performance, it suggests that stakeholders especially investors may not assign it significant value. Companies may prioritize market conditions over sustainability and other considerations. Enhanced communication or policies may be required to underscore its significance. Subsequent research should encompass firms across all sectors, extend over longer durations, and employ diverse financial performance indicators to enhance precision and understanding. Researchers may also compare results across nations and industries to enhance comprehension of the impact of environmental disclosure on financial success.

Page(s): 1047-1070

DOI: 10.57239/PJLSS-2025-23.1.0081

Published: Journal: Pakistan Journal of Life and Social Sciences, Volume: 23, Issue: 1, Year: 2025

Keywords:

Sustainability Reporting Performance Listed firm and Environmental

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