Sustainability practices and corporate performance: A case of Malaysia companies
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Date
2012-06-28
Authors
Isa, Anuar
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
This study investigates the extent of sustainability disclosure and also the factors of
sustainable practices among Malaysian Public Listed companies on Bursa Malaysia as well as
the relationship between sustainability practices and company performance. One hundred
companies were selected based on market capitalization of Bursa Malaysia website. The
company's annual report in 201 0 used to examine the relationship between the practices of
sustainability through sustainability reports and performance of the company. Disclosure
index study conducted to investigate sustainability activities disclose in sustainability report.
Based on criteria in disclosure index each activity disclose marked as a one and otherwise
marked as a zero. This study based on stakeholder theory, using several criteria such as level
of satisfaction of stakeholders in sustainability practices, this study aims to investigate the
relationship between sustainability report and company performance. Data were analyzed
through descriptive test, regression test and correlation test. Analysis results are interpreted in
terms of the relationship is positive or negative relationship. Based on the results of the
analysis obtained significant relationship between sustainability reporting and corporate
perfonnance. It shows that companies involved in sustainability activities able to improve
their performance. However, from the result, found that corporate governance has no
significant relationship with company performances. It shows the difference with previous
studies.
Description
Keywords
Sustainability reporting disclosure,