The Energy Disclosure Among Energy Intensive Companies in Malaysia: A Resource Based Approach

Abstract

This study examines the extent of, and factors influencing, energy disclosure in Malaysia. We content analysed the annual reports of top 100 energy intensive companies for the year 2014. Using resource-based theory, we analysed if companies' tangible and intangible resources as well as human capabilities determine the extent of energy disclosure. Overall, the disclosure is low with an average 'occurrence' of energy-related information of 3.53. We also find that the 'Top Brand Value' companies and companies with a larger number of directors serving on the board tend to provide greater energy disclosures. However, other variables -in particular tangible resources -have no significant influence. The findings provide tentative evidence to support the arguments of resource-based theory.

Energy Conservation and Firm Performance in Thailand: Comparison between Energy-Intensive and Non-Energy-Intensive Industries

“…Therefore, the listed companies were divided into 2 groups. The companies in the energy-intensive industries (denoted as EI) are comprised of energy, steel, metal, paper materials, petrochemicals, chemicals, mining, transportation, and logistics [4,10,65], while the non-energy-intensive industries (denoted as NEI) were all companies in the other industries. An Independent sample t-test was used to compare energy conservation levels between companies in the energy-intensive and non-energy-intensive industries in Hypothesis 1.…”

“…Population and economic growth in Southeast Asia have placed its energy sector outlook in the global spotlight [4]. As reported by International Energy Agency [25], the region's total demand for primary energy has increased rapidly, with substantial increases in the use of coal, oil, natural gas, and renewable energy sources.…”

“…Energy conservation as the independent variable was measured by energy conservation scores (ECS) and based on the energy conservation index to examine the level of energy conservation disclosed in annual reports. The index, which consists of 13 components (as shown in Table 1), was created based on previous studies on corporate energy conservation practices [4][5][6][7][61][62][63]. The disclosure index provides an aggregated measure of the quantity of disclosure within the annual report.…”

“…The empirical verification of unusual patterns of negative consequences encourages global initiatives to protect the environment and prevent global problems associated with climate change [1,3]. As global climate change concerns keep growing, energy conservation and reduction in carbon emissions have become crucial priorities in industrial activities [4,5]. These concerns are demonstrated through corporate social and environmental responsibility via prudent care in using resources and energy as good citizenship [6].…”

“…Several previous studies investigated energy reporting [4], and some demonstrated the positive impact of energy conservation on firm performance [1,16,17]. However, unlike general environmental reporting in the literature, there have been a limited number of studies in Thailand focusing on energy conservation.…”