Environmental Disclosure and Financial Performance of Public Listed Firms in Malaysia"

• Main Author: Gam, Jun Yee
• Format: Final Year Project Report
• Language: English
• Published: Universiti Malaysia Sarawak (UNIMAS) 2019
• Subjects: HG Finance
• Online Access: http://ir.unimas.my/id/eprint/38038/6/GAM%20JUN%20YEE.pdf; http://ir.unimas.my/id/eprint/38038/

Environmental disclosures is believed can enhance firms 'financial performance from the views of previous studies, but there is no mandatory requirement for Malaysian firms to exercise environmental disclosures currently. Eventually, some firms may choose not to disclose environmental information. Besides, given the inconsistent findings when studied environmental disclosures in Malaysia, this research intends to further investigate the relationship between environmental disclosures and financial performance of Malaysian public listed firms. There were 428 public listed firms for year 2016 being studied and the needed data were collected from Thomson Reuters DataStream as well as firms `yearly reports. From the results of this research, environmental disclosures was found to have insignificant relationship with financial performance. This suggested government of Malaysia should provide financial support and incentives to firms in order to encourage them engage in environmental activities and reporting. Moreover, the results of control variables with financial performance were mixed. All in all, there were 3 out of 5 hypotheses being supported. Furthermore, this research recommended future researchers to study the relationship between environmental disclosure and financial performance of firms in each sector separately.