The mediating role of environmental performance on the relationship between corporate governance mechanisms and environmental disclosure

Razieh Adinehzadeh, Romlah Jaffar, Zaleha Abdul Shukor, Mara Riduan Che Abdul Rahman

Research output: Contribution to journalArticle

Abstract

Despite the growing number of environmental rules and regulations, there are relatively few studies that consider the whole association between environmental performance, corporate governance and environmental reporting. Therefore, the objectives of the study are to investigate the association between corporate governance and environmental disclosures quality and the mediating role of environmental performance in this relationship. Sample of study consists of 344 companies listed on Bursa Malaysia for the year of 2013. Environmental performance (EP) data were collected from the Malaysia Department of the Environment (DOE). Corporate Governance (CG) data were collected from the annual report of sample companies using corporate governance index based on Malaysian Code on Corporate Governance (MCCG). The results of study show that corporate governance is positively associated with environmental performance and its disclosure. The results also show that environmental performance partially mediates the relationship between corporate governance and environmental disclosure quality. This study serves as a valuable input to top management regarding the importance of corporate governance mechanisms towards the establishment of environmental related policies and strategies that help to improve environmental performance. The findings also provide an impetus for companies to develop specific abilities and resources in prioritised areas that are of a concern to relevant stakeholders.

Original languageEnglish
Pages (from-to)153-183
Number of pages31
JournalAsian Academy of Management Journal of Accounting and Finance
Volume14
Issue number1
DOIs
Publication statusPublished - 1 Jan 2018

Fingerprint

Environmental disclosure
Corporate governance
Environmental performance
Corporate governance mechanisms
Disclosure quality
Malaysia
Top management
Stakeholders
Environmental reporting
Listed companies
Disclosure
Annual reports
Governance indexes
Resources

Keywords

  • Corporate governance
  • Environmental performance
  • Stakeholders’ theory
  • Voluntary environmental disclosure

ASJC Scopus subject areas

  • Accounting
  • Finance

Cite this

The mediating role of environmental performance on the relationship between corporate governance mechanisms and environmental disclosure. / Adinehzadeh, Razieh; Jaffar, Romlah; Abdul Shukor, Zaleha; Che Abdul Rahman, Mara Riduan.

In: Asian Academy of Management Journal of Accounting and Finance, Vol. 14, No. 1, 01.01.2018, p. 153-183.

Research output: Contribution to journalArticle

@article{9cb585c77c70432ea6380fb281b22871,
title = "The mediating role of environmental performance on the relationship between corporate governance mechanisms and environmental disclosure",
abstract = "Despite the growing number of environmental rules and regulations, there are relatively few studies that consider the whole association between environmental performance, corporate governance and environmental reporting. Therefore, the objectives of the study are to investigate the association between corporate governance and environmental disclosures quality and the mediating role of environmental performance in this relationship. Sample of study consists of 344 companies listed on Bursa Malaysia for the year of 2013. Environmental performance (EP) data were collected from the Malaysia Department of the Environment (DOE). Corporate Governance (CG) data were collected from the annual report of sample companies using corporate governance index based on Malaysian Code on Corporate Governance (MCCG). The results of study show that corporate governance is positively associated with environmental performance and its disclosure. The results also show that environmental performance partially mediates the relationship between corporate governance and environmental disclosure quality. This study serves as a valuable input to top management regarding the importance of corporate governance mechanisms towards the establishment of environmental related policies and strategies that help to improve environmental performance. The findings also provide an impetus for companies to develop specific abilities and resources in prioritised areas that are of a concern to relevant stakeholders.",
keywords = "Corporate governance, Environmental performance, Stakeholders’ theory, Voluntary environmental disclosure",
author = "Razieh Adinehzadeh and Romlah Jaffar and {Abdul Shukor}, Zaleha and {Che Abdul Rahman}, {Mara Riduan}",
year = "2018",
month = "1",
day = "1",
doi = "10.21315/aamjaf2018.14.1.7",
language = "English",
volume = "14",
pages = "153--183",
journal = "Asian Academy of Management Journal of Accounting and Finance",
issn = "1823-4992",
publisher = "Universiti Sains Malaysia",
number = "1",

}

TY - JOUR

T1 - The mediating role of environmental performance on the relationship between corporate governance mechanisms and environmental disclosure

AU - Adinehzadeh, Razieh

AU - Jaffar, Romlah

AU - Abdul Shukor, Zaleha

AU - Che Abdul Rahman, Mara Riduan

PY - 2018/1/1

Y1 - 2018/1/1

N2 - Despite the growing number of environmental rules and regulations, there are relatively few studies that consider the whole association between environmental performance, corporate governance and environmental reporting. Therefore, the objectives of the study are to investigate the association between corporate governance and environmental disclosures quality and the mediating role of environmental performance in this relationship. Sample of study consists of 344 companies listed on Bursa Malaysia for the year of 2013. Environmental performance (EP) data were collected from the Malaysia Department of the Environment (DOE). Corporate Governance (CG) data were collected from the annual report of sample companies using corporate governance index based on Malaysian Code on Corporate Governance (MCCG). The results of study show that corporate governance is positively associated with environmental performance and its disclosure. The results also show that environmental performance partially mediates the relationship between corporate governance and environmental disclosure quality. This study serves as a valuable input to top management regarding the importance of corporate governance mechanisms towards the establishment of environmental related policies and strategies that help to improve environmental performance. The findings also provide an impetus for companies to develop specific abilities and resources in prioritised areas that are of a concern to relevant stakeholders.

AB - Despite the growing number of environmental rules and regulations, there are relatively few studies that consider the whole association between environmental performance, corporate governance and environmental reporting. Therefore, the objectives of the study are to investigate the association between corporate governance and environmental disclosures quality and the mediating role of environmental performance in this relationship. Sample of study consists of 344 companies listed on Bursa Malaysia for the year of 2013. Environmental performance (EP) data were collected from the Malaysia Department of the Environment (DOE). Corporate Governance (CG) data were collected from the annual report of sample companies using corporate governance index based on Malaysian Code on Corporate Governance (MCCG). The results of study show that corporate governance is positively associated with environmental performance and its disclosure. The results also show that environmental performance partially mediates the relationship between corporate governance and environmental disclosure quality. This study serves as a valuable input to top management regarding the importance of corporate governance mechanisms towards the establishment of environmental related policies and strategies that help to improve environmental performance. The findings also provide an impetus for companies to develop specific abilities and resources in prioritised areas that are of a concern to relevant stakeholders.

KW - Corporate governance

KW - Environmental performance

KW - Stakeholders’ theory

KW - Voluntary environmental disclosure

UR - http://www.scopus.com/inward/record.url?scp=85052994903&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85052994903&partnerID=8YFLogxK

U2 - 10.21315/aamjaf2018.14.1.7

DO - 10.21315/aamjaf2018.14.1.7

M3 - Article

AN - SCOPUS:85052994903

VL - 14

SP - 153

EP - 183

JO - Asian Academy of Management Journal of Accounting and Finance

JF - Asian Academy of Management Journal of Accounting and Finance

SN - 1823-4992

IS - 1

ER -