Ownership structure and corporate social responsibility disclosure: some Malaysian evidence

Purpose – The purpose of this article is to examine the influence of ownership structure on corporate social responsibility (CSR) disclosure in Malaysian company annual reports (CARs). Design/methodology/approach – The study uses a CSR disclosure checklist to measure the extent of CSR disclosure...

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Main Author: Mohd Ghazali, Nazli Anum
Format: Article
Language:English
Published: Emerald Group Publishing 2007
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Online Access:http://irep.iium.edu.my/444/1/Ownership_structure.pdf
http://irep.iium.edu.my/444/
http://dx.doi.org/10.1108/14720700710756535
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spelling my.iium.irep.4442013-07-06T03:45:16Z http://irep.iium.edu.my/444/ Ownership structure and corporate social responsibility disclosure: some Malaysian evidence Mohd Ghazali, Nazli Anum HF5387 Business ethics HF5601 Accounting. Bookkeeping Purpose – The purpose of this article is to examine the influence of ownership structure on corporate social responsibility (CSR) disclosure in Malaysian company annual reports (CARs). Design/methodology/approach – The study uses a CSR disclosure checklist to measure the extent of CSR disclosure in annual reports and a multiple regression analysis to examine the association between ownership structure and the extent of CSR disclosure in annual reports. Findings – The paper finds that, even among the larger and actively traded stocks in Malaysia, there is considerable variability in the amount of social activities disclosed in corporate annual reports. Results from multiple regression analysis show that, consistent with expectations, companies in which the directors hold a higher proportion of equity shares (owner-managed companies) disclosed significantly less CSR information, while companies in which the government is a substantial shareholder disclosed significantly more CSR information in their annual reports. Research limitations/implications – The sample for this study comes from larger and actively traded stocks on the Bursa Malaysia. Thus, the results may not be generalizable to smaller and less actively traded stocks. Practical implications – The findings appear to suggest that the level of CSR disclosure in annual reports of companies depends on the extent of ‘‘public pressure’’ faced by each company. The results also raise the question of whether corporate involvement in social activities should be made a mandatory disclosure in annual reports to better assess the extent of ‘‘corporate citizenship’’ of Malaysian companies. Originality/value – The study finds that ownership structure, which had been ignored in prior studies on factors influencing CSR disclosure,has an impact on CSR disclosure. Emerald Group Publishing 2007 Article REM application/pdf en http://irep.iium.edu.my/444/1/Ownership_structure.pdf Mohd Ghazali, Nazli Anum (2007) Ownership structure and corporate social responsibility disclosure: some Malaysian evidence. Corporate Governance, 7 (3). pp. 251-266. ISSN 1472-0701 http://dx.doi.org/10.1108/14720700710756535 doi:10.1108/14720700710756535
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
topic HF5387 Business ethics
HF5601 Accounting. Bookkeeping
spellingShingle HF5387 Business ethics
HF5601 Accounting. Bookkeeping
Mohd Ghazali, Nazli Anum
Ownership structure and corporate social responsibility disclosure: some Malaysian evidence
description Purpose – The purpose of this article is to examine the influence of ownership structure on corporate social responsibility (CSR) disclosure in Malaysian company annual reports (CARs). Design/methodology/approach – The study uses a CSR disclosure checklist to measure the extent of CSR disclosure in annual reports and a multiple regression analysis to examine the association between ownership structure and the extent of CSR disclosure in annual reports. Findings – The paper finds that, even among the larger and actively traded stocks in Malaysia, there is considerable variability in the amount of social activities disclosed in corporate annual reports. Results from multiple regression analysis show that, consistent with expectations, companies in which the directors hold a higher proportion of equity shares (owner-managed companies) disclosed significantly less CSR information, while companies in which the government is a substantial shareholder disclosed significantly more CSR information in their annual reports. Research limitations/implications – The sample for this study comes from larger and actively traded stocks on the Bursa Malaysia. Thus, the results may not be generalizable to smaller and less actively traded stocks. Practical implications – The findings appear to suggest that the level of CSR disclosure in annual reports of companies depends on the extent of ‘‘public pressure’’ faced by each company. The results also raise the question of whether corporate involvement in social activities should be made a mandatory disclosure in annual reports to better assess the extent of ‘‘corporate citizenship’’ of Malaysian companies. Originality/value – The study finds that ownership structure, which had been ignored in prior studies on factors influencing CSR disclosure,has an impact on CSR disclosure.
format Article
author Mohd Ghazali, Nazli Anum
author_facet Mohd Ghazali, Nazli Anum
author_sort Mohd Ghazali, Nazli Anum
title Ownership structure and corporate social responsibility disclosure: some Malaysian evidence
title_short Ownership structure and corporate social responsibility disclosure: some Malaysian evidence
title_full Ownership structure and corporate social responsibility disclosure: some Malaysian evidence
title_fullStr Ownership structure and corporate social responsibility disclosure: some Malaysian evidence
title_full_unstemmed Ownership structure and corporate social responsibility disclosure: some Malaysian evidence
title_sort ownership structure and corporate social responsibility disclosure: some malaysian evidence
publisher Emerald Group Publishing
publishDate 2007
url http://irep.iium.edu.my/444/1/Ownership_structure.pdf
http://irep.iium.edu.my/444/
http://dx.doi.org/10.1108/14720700710756535
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score 13.144533