GREEN-BASED GOVERNANCE AND EXTERNAL PRESSURE: DO THEY INFLUENCE ENVIRONMENTAL DISCLOSURE? EMPIRICAL EVIDENCE FROM ISO 14001 COMPANIES IN MALAYSIA

Afaf Izzati Nafhah Radzi, Faizah Darus, Haslinda Yusoff, Ancella Hermawan
2020 Humanities & Social Sciences Reviews  
Purpose: The primary objective of this study is to investigate the synergistic influence of green-based governance and external pressure on the quality of environmental disclosure among ISO14001 certified companies that are publicly-listed in Malaysia. Methodology: Content analyses have been conducted on the 2014 annual and sustainability reports of ninety (90) ISO14001 certified companies. Results: The results of the multiple regression analyses reveal that green-based governance in the form
more » ... nance in the form of an effective environmental management system (EMS) and external pressure from industry membership influence the quality of environmental disclosure. The findings of the study signify that a proper EMS system needs to be implemented in order to reduce agency conflicts arising from information asymmetry. Implications: Companies need to have an effective environmental management system such as ISO14001 companies are motivated to provide quality environmental information to reduce information asymmetry and agency conflicts between managers and stakeholders.
doi:10.18510/hssr.2020.82108 fatcat:pqs3xmwtrzchnbogjtbo2xxpna