Corporate governance and society disclosure: the application of legitimacy theory / Joanne Shaza Janang

Corporate governance and society disclosure: the application of legitimacy theory / Joanne Shaza Janang

It is important for companies to adhere to society’s values and norms by engaging in corporate social responsibility activities to remain legitimate, which in turn, translated into disclosures in annual reports. Corporate governance mechanisms have been used as explanatory factors in determining the...

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Main Author: Janang, Joanne Shaza
Format: Thesis
Language:English
Published: 2018
Online Access:https://ir.uitm.edu.my/id/eprint/89897/1/89897.pdf
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spelling my-uitm-ir.898972024-04-22T09:09:14Z Corporate governance and society disclosure: the application of legitimacy theory / Joanne Shaza Janang 2018 Janang, Joanne Shaza It is important for companies to adhere to society’s values and norms by engaging in corporate social responsibility activities to remain legitimate, which in turn, translated into disclosures in annual reports. Corporate governance mechanisms have been used as explanatory factors in determining the level of CSR disclosures. This study aimed to investigate the corporate governance related motivating factors (audit committee, CSR committee, board size and independent directors) in influencing society disclosure in the Malaysian companies’ annual reports using the legitimacy theory. The control variables examined were size, industry type and leverage. The level of society disclosure examined against the Modified Society Disclosure Index (MoSDI), which was comprehensively developed based on the society indicator of Global Reporting Initiative Version 4.0, preliminary observation on 2016 NACRA winners’ annual reports and past literature. MoSDI comprises 50 items with nine main categories. The analysis involved 78 top companies’ annual reports and sustainability reports from the year 2014, 2015 and 2016 respectively. Based on the findings, it was found that, on average for three years, society disclosure is relatively low at 34.75%, whereby out of 50 items examined, on average, the companies in Malaysia disclosed 17 items. Specifically, the extent of society disclosure for the year 2014, 2015 and 2016 were 33.64%, 36.00% and 34.61% respectively. The hierarchical regression analysis results found that independent directors and company’s size were significantly associated with the level of society disclosure. By complying with good corporate governance practice, awareness can be raised and preventive measures can be taken in addressing society’s issues through proper society disclosure. In addition, legitimacy gap can also be reduced via society disclosure. This study contributes to the CSR literature by specifically examining the relationship between corporate governance mechanisms and society disclosure using the legitimacy theory. Theoretical implication and implications on government and policy makers, companies, communities and education system are also provided in the thesis. 2018 Thesis https://ir.uitm.edu.my/id/eprint/89897/ https://ir.uitm.edu.my/id/eprint/89897/1/89897.pdf text en public masters Universiti Teknologi MARA (UiTM) Faculty of Accountancy Joseph, Corina
institution Universiti Teknologi MARA
collection UiTM Institutional Repository
language English
advisor Joseph, Corina
description It is important for companies to adhere to society’s values and norms by engaging in corporate social responsibility activities to remain legitimate, which in turn, translated into disclosures in annual reports. Corporate governance mechanisms have been used as explanatory factors in determining the level of CSR disclosures. This study aimed to investigate the corporate governance related motivating factors (audit committee, CSR committee, board size and independent directors) in influencing society disclosure in the Malaysian companies’ annual reports using the legitimacy theory. The control variables examined were size, industry type and leverage. The level of society disclosure examined against the Modified Society Disclosure Index (MoSDI), which was comprehensively developed based on the society indicator of Global Reporting Initiative Version 4.0, preliminary observation on 2016 NACRA winners’ annual reports and past literature. MoSDI comprises 50 items with nine main categories. The analysis involved 78 top companies’ annual reports and sustainability reports from the year 2014, 2015 and 2016 respectively. Based on the findings, it was found that, on average for three years, society disclosure is relatively low at 34.75%, whereby out of 50 items examined, on average, the companies in Malaysia disclosed 17 items. Specifically, the extent of society disclosure for the year 2014, 2015 and 2016 were 33.64%, 36.00% and 34.61% respectively. The hierarchical regression analysis results found that independent directors and company’s size were significantly associated with the level of society disclosure. By complying with good corporate governance practice, awareness can be raised and preventive measures can be taken in addressing society’s issues through proper society disclosure. In addition, legitimacy gap can also be reduced via society disclosure. This study contributes to the CSR literature by specifically examining the relationship between corporate governance mechanisms and society disclosure using the legitimacy theory. Theoretical implication and implications on government and policy makers, companies, communities and education system are also provided in the thesis.
format Thesis
qualification_level Master's degree
author Janang, Joanne Shaza
spellingShingle Janang, Joanne Shaza
Corporate governance and society disclosure: the application of legitimacy theory / Joanne Shaza Janang
author_facet Janang, Joanne Shaza
author_sort Janang, Joanne Shaza
title Corporate governance and society disclosure: the application of legitimacy theory / Joanne Shaza Janang
title_short Corporate governance and society disclosure: the application of legitimacy theory / Joanne Shaza Janang
title_full Corporate governance and society disclosure: the application of legitimacy theory / Joanne Shaza Janang
title_fullStr Corporate governance and society disclosure: the application of legitimacy theory / Joanne Shaza Janang
title_full_unstemmed Corporate governance and society disclosure: the application of legitimacy theory / Joanne Shaza Janang
title_sort corporate governance and society disclosure: the application of legitimacy theory / joanne shaza janang
granting_institution Universiti Teknologi MARA (UiTM)
granting_department Faculty of Accountancy
publishDate 2018
url https://ir.uitm.edu.my/id/eprint/89897/1/89897.pdf
_version_ 1804889819398012928

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