Mustaruddin Saleh, Norhayah Zulkifli and Rusnah Muhamad
The purpose of this paper is to examine the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) of Malaysian public listed…
Abstract
Purpose
The purpose of this paper is to examine the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) of Malaysian public listed companies (PLCs) as an emerging market setting.
Design/methodology/approach
A longitudinal data analysis with a large‐sample testing was carried out from 200 Malaysian PLCs by using panel data analysis during a seven‐years period. The statistical power with fixed effect and random effect model was utilized.
Findings
Results of earlier estimations indicate that there are positive and significant related of the CSR on CFP. Two of the CSR dimensions, namely employee relations and community involvement, were found to be positively related to financial performance. This proves that CSR practices can be considered as effort to enhance the financial performance of PLCs in Malaysia. The results also reveal that there is limited evidence of the relationship between CSR and CFP in the longterm.
Practical implications
These findings suggest that Malaysian PLCs should be involved consistently in their CSR practices because CSR has a significant impact on improving financial performance in Malaysian PLCs.
Originality/value
The majority of studies on CSR in Malaysia pertain to the analysis of such reporting and motivations of managers toward CSR practices. This study conducts a comprehensive empirical research on the relationship between CSR and CFP in Malaysian PLCs.
Details
Keywords
Mustaruddin Saleh, Norhayah Zulkifli and Rusnah Muhamad
The aim of this paper is to explore corporate social responsibility (CSR) disclosure and its relation to institutional ownership (IO) of Malaysian public listed companies (PLCs).
Abstract
Purpose
The aim of this paper is to explore corporate social responsibility (CSR) disclosure and its relation to institutional ownership (IO) of Malaysian public listed companies (PLCs).
Design/methodology/approach
Testing of hypotheses have been conducted by applying multivariate regression techniques utilizing longitudinal data analysis of companies' annual reports. Two well‐established models, the fixed effects model and random effects model are conducted in this paper.
Findings
Results which confirmed earlier estimations indicated that there are positive and significant relationships between CSR disclosure (CSRD) and IO. This result suggests that Malaysian PLCs are able to attract and maintain their institutional investors while they engage in social activities.
Practical implications
Companies should be encouraged to be involved in CSR activities as one of their strategies in attracting investment as well as to improve their reputation and image.
Originality/value
Most studies on CSRD in Malaysia pertain to the analysis of such reporting and motivations of managers towards CSRD. This paper conducts a comprehensive empirical research on the relationship between CSRD and IO in Malaysian PLCs.
Details
Keywords
Jamilah Ahmad and Suriati Saad
The goal of Corporate Social Responsibility (CSR) is to ensure that organisations embrace social responsibility and cultivate activities that provide positive impact on the…
Abstract
The goal of Corporate Social Responsibility (CSR) is to ensure that organisations embrace social responsibility and cultivate activities that provide positive impact on the environment, society, consumers, employees, communities and all other members of the public sphere. Therefore, it is highly important to enhance and augment the teaching of CSR across various disciplines in higher learning institutions. Since 2006, most organisations in Malaysia have been highly encouraged to carry out their Social Responsibility activities, with the government providing support for CSR policies through its tax reduction incentives. Various CSR awards and acknowledgement of the awards provide high value and positive reputation to the organisations that implement CSR-related activities. As a result there is an increasing awareness among businesses to focus beyond compliance with laws in order to respond to the dynamic economic, societal and environmental changes.
This paper aims to examine firm characteristics and ownership structure determinants of corporate social and environmental voluntary disclosure (CSEVD) practices in Saudi Arabia…
Abstract
Purpose
This paper aims to examine firm characteristics and ownership structure determinants of corporate social and environmental voluntary disclosure (CSEVD) practices in Saudi Arabia to address the paucity of research in this field for Saudi listed firms.
Design/methodology/approach
The paper uses manual content and regression analyses for online annual report data for Saudi non-financial listed firms over the period 2016–2018 using CSEVD items drawing on global reporting initiative-G4 guidelines.
Findings
Models show that Saudi firm CSEVD has increased over time compared to previous studies to an average of 68% disclosure due to new corporate governance regulations and IFRS implementation. The models show that firm size, leverage, manufacturing industry type and government ownership are positive determinants of CSEVD, while family ownership is the negative driver of CSEVD. However, firm profitability, audit firm size, firm age and institutional ownership have no impact on the level of CSEVD.
Originality/value
Using legitimacy and stakeholder theories, the paper determines the influence of firm characteristics and ownership structure on CSEVD, identifying implications for firm stakeholders and providing some evidence on the impact of corporate governance regulation and IFRS implementation on such disclosure. The paper provides additional evidence on progress towards Saudi’s Vision 2030.