The Impact of Board Diversity on Energy-Related SDGs Disclosure in Malaysian Public Listed Companies

Abstract

This study aims to determine the degree of disclosure on energy-related SDGs by Malaysian public listed companies and examine the impact of board diversity on the disclosure. Board diversity, which acts as the independent variable in this study, focuses on board size, board independence and board age. The study sample comprised 320 companies listed in Bursa Malaysia and randomly selected out of 788 companies. Data on energy-related SDGs disclosure, as measurement for the dependant variables, were identified through a content analysis of the 2019 annual report of the 320 companies. Findings indicate that SDGs disclosure is still low among Malaysian companies with only 31 percent of the sample companies making a specific SDG disclosure in their annual report. Further analysis on board diversity and energy-related disclosure found that board size and board independence have significant influence on energy-related SDGs disclosure. However, no significant relationship was found between board age and energy-related SDGs disclosure. Findings of the study are more likely to have a significant impact on corporations that aggressively communicate their energy-related initiatives and efforts in their business framework to stakeholders.