The purpose of this study was to extend our understanding of how corporate social responsibility (CSR) disclosures impact capital market participants, specifically sell-side analysts. The sample of this study was based on a dataset from a panel of 285 Malaysian firms for the period of 2008–2013 (738 firm-year observations). This study employed ordinary least square regression. This study found that firms with better CSR disclosures are more likely to receive optimistic investment recommendations. Subsample analyses revealed that the CSR-recommendation nexus is more pronounced under a transparent information environment (i) when there is less family control and (ii) when a firm is audited by a prominent Big Four auditor. The results implied that analysts tend to give favorable stock recommendations to high CSR companies operating in a more transparent information environment. To gain analysts’ confidence and make them more appreciative of the CSR disclosures, family firms with proactive CSR engagement are encouraged to switch to Big Four auditors or to seek assurance on their CSR reports. This study broadens our understanding of the factors influencing analysts’ recommendations and the preferences of analysts towards CSR engagement in an emerging market. This paper expands the literature on how corporate responsibility disclosures impact analysts’ final output, as reflected in the recommendation opinion, an area that has so far received little attention, particularly in emerging markets. Furthermore, this study also provides fresh evidence that analyst behavior towards CSR disclosures varies based on the strength of the firm’s information environment.
This study examines the impact of ESG practices and its three pillars on the stock price, and the moderating role of CSR award, and having an ex-CEO as a chairman on the ESG-value nexus in Japan and Malaysia. Based on a large sample of 538 observations from 2015–2019, we find a positive valuation effect of ESG practices in both countries, which are in line with stakeholder theory. We observe that the value relevance of ESG practice is significantly higher in Malaysia than in Japan. However, the market does not significantly value all three ESG pillars equally in Japan and Malaysia. Our study reveals that the social pillar is more dominant in Japan; whereas, in Malaysia, it is the environmental pillar that strongly influences market value. According to signaling theory, we find CSR award only moderates the market valuation of ESG in Malaysia. Based on positive synergy theory, we further suggest that when an ex-CEO sits as a chairman, it moderates the value relevance of ESG in Japan. Our study has practical implications for stakeholders including investors, policymakers, and managers. Our results suggest investors and regulators in the Indo-Pacific region need to distinguish between the three pillars of ESG practices and their consequences on the market price, before making an investment decision.
Voluntary disclosure is additional information beyond mandatory disclosure. Nowadays, the information sources available for stakeholders to make informed decision are not limited to annual reports. The first publication on voluntary disclosure started in 1979. As of January 12, 2020, a total of 520 publications on voluntary disclosure in the subject areas business, management, accounting, economics and finance were retrieved from Scopus core collection and analyzed. The study used bibliometric analysis to summarize the state of knowledge and development trends of voluntary disclosure. The study enhanced our understanding of the firms' information environment which is critical for the functioning of an efficient capital market in promoting corporate transparency.
The annual general meeting (AGM) minutes act as an integral part of a good disclosure and transparency in delivering corporate information. Through the content of AGM minutes, shareholders can have an overview of the company's performance. The paper examines the in- depth context of the AGM minutes of listed companies in Malaysia. Using the content analysis, a self-constructed checklist was developed to measure the quality of AGM minutes of listed companies in Malaysia. A sample of 115 AGM minutes from various sectors listed in Bursa Malaysia for the financial year ended December 31, 2016, was reported. The results indicate that the quality of AGM minutes discloses by listed companies relatively low consistent with the prior literature that sought for more exploration on the AGM. Using SPSS version 24, a descriptive analysis was presented in this paper. The low level of AGM minutes' disclosure among Malaysian listed companies suggests that these companies merely disclose within the mandatory requirements. The initiative by the Minority Shareholder Watch Group (MSWG) encourages more disclosure cause listed companies to disclosure additional information such as AGM minutes' content. The result of this study provides meaningful information, especially on the quality of AGM minutes' disclosure in Malaysian listed companies, which remained largely unexplored. The study provides insight contribution of the quality AGM minutes on the corporate website prior implementation of Companies Act 2016.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.