Voluntary environmental disclosures of Malaysian listed companies: an application of stakeholder theory

This study examines the motives behind the voluntary provision of annual report environmental disclosures (AREDs) by Malaysian listed companies using stakeholder theory. The investigation is conducted in two phases employing both quantitative and qualitative methods of analysis. Using regression analysis, Phase 1 results suggest that proxies for strategic posture are significantly related with the quality and quantity of disclosures. It is also found that the shareholder and creditor power (two stakeholder power proxies) and the average return on assets (economic performance proxy) are not significantly associated with AREDs. These results provide an impetus to ask further questions which are answered in Phase 2 through the use of qualitative interviews. Phase 2 uncovers the motivations behind the provision of AREDs which are related to the central premise of stakeholder theory.