IJFAM

Article Details

Vol. 7 No. 2 (2025): September

Company and CEO characteristics of climate change disclosure in Malaysia: A proposed empirical framework

https://doi.org/10.35912/ijfam.v7i2.3117
15 Sep 2025

Abstract

Purpose: This study examines how company-specific characteristics (profitability, size, leverage) and CEO traits (duality, tenure, education, and meeting attendance) influence Climate Change Disclosure (CCD) practices among Malaysian listed companies. Grounded in legitimacy theory, the research seeks to identify internal determinants of voluntary climate reporting in emerging markets.

Methodology/approach: A quantitative content analysis is conducted on 114 Malaysian listed firms from four environmentally sensitive sectors during 2021–2022. Data are manually collected from annual and sustainability reports available on corporate websites and Bursa Malaysia. CCD is measured using a disclosure index based on TCFD recommendations. Descriptive statistics, Pearson correlation, and multiple regression analysis are employed to evaluate relationships between company and CEO characteristics and CCD.

Results/findings: Findings reveal that company-level variables such as profitability, firm size, and leverage, alongside CEO attributes including duality, tenure, education, and meeting attendance, significantly affect CCD practices. Larger and more profitable firms, as well as CEOs with stronger educational backgrounds and greater governance engagement, are more likely to adopt higher disclosure levels.

Conclusions: The study highlights the combined importance of structural and leadership factors in shaping CCD in Malaysia. It provides empirical insights to guide Malaysia’s transition toward compulsory climate reporting under IFRS S1 and S2.

Limitations: The research focuses only on voluntary disclosures in four environmentally sensitive sectors, limiting generalization across industries.

Contribution: This study contributes by integrating company and CEO characteristics into a single framework, offering implications for regulators, policymakers, and corporate governance reform in emerging economies.

Keywords

CEO Characteristics Climate Change Disclosure IFRS S2 Legitimacy Theory Malaysian Market

How to Cite

Adlina, F. S. ., & Junaidda, U. . (2025). Company and CEO characteristics of climate change disclosure in Malaysia: A proposed empirical framework . International Journal of Financial, Accounting, and Management, 7(2), 275–288. https://doi.org/10.35912/ijfam.v7i2.3117

Download Citation

Endnote/Zotero/Mendeley (RIS) BibTeX

References

  1. Ahmad, G. N., Prasetyo, M. R. P., Buchdadi, A. D., Widyastuti, U., & Kurniawati, H. (2022). The effect of CEO characteristics on firm performance of food and beverage companies in Indonesia, Malaysia and Singapore. Calitatea, 23(186), 111-122. doi:https://doi.org/10.47750/qas/23.186.15
  2. Al-Hiyari, A., Latif, R. A., & Amran, N. A. (2016). Goodwill impairment: An examination of chief executive officer tenure in Malaysia. Advanced Science Letters, 22(5-6), 1356-1359. doi:https://doi.org/10.1166/asl.2016.6612
  3. Al-Sabri, H. M. H., Nordin, N., & Shahar, H. K. (2022). The impact of chief executive officer (CEO) and deal characteristics on mergers and acquisitions (M&A) duration: A quantile regression evidence from an emerging market. Asian Academy of Management Journal of Accounting and Finance. doi:https://doi.org/10.21315/aamjaf2022.18.1.5
  4. Alarussi, A. S., & Alhaderi, S. M. (2018). Factors affecting profitability in Malaysia. Journal of Economic Studies, 45(3), 442-458. doi:https://doi.org/10.1108/JES-05-2017-0124
  5. Ali, M., Razak, L. A., Besar, M. H. A., & Abidin, S. (2023). Board Gender Diversity and ESG Disclosure: Does Board Meeting Attendance Matters? European Proceedings of Social and Behavioural Sciences, 131, 1230-1250. doi:https://doi.org/10.15405/epsbs.2023.11.98
  6. Alqatamin, R., Aribi, Z. A., & Arun, T. (2017). The effect of CEOs’ characteristics on forward-looking information. Journal of Applied Accounting Research, 18(4), 402-424. doi:https://doi.org/10.1108/JAAR-03-2016-0027
  7. Altarawneh, M., Shafie, R., & Ishak, R. (2020). Chief executive officer characteristics and financial restatements in Malaysia. International Journal of Financial Research. doi:https://doi.org/10.5430/ijfr.v11n2p173
  8. Attig, N., Rahaman, M. M., & Trabelsi, S. (2021). When Silence Is Golden: Greenwashing and the Cost of Private Debt. Available at SSRN 3786458.
  9. Ayedh, A. M., Fatima, A., & Mohammad, M. H. S. (2019). Earnings management in Malaysian companies during the global financial crisis and the coincidental effect of IFRS adoption. Australasian Accounting, Business and Finance Journal, 13(1). doi:https://doi.org/10.14453/aabfj.v13i1.2
  10. Bingler, J. A., Kraus, M., Leippold, M., & Webersinke, N. (2022). Cheap talk and cherry-picking: What ClimateBert has to say on corporate climate risk disclosures. Finance Research Letters, 47. doi:https://doi.org/10.1016/j.frl.2022.102776
  11. Bolden, E. C. (2019). A critical review of statistical techniques and applications used to study tourism impacts. The Routledge Handbook of Tourism Impacts, 455-468. doi:https://doi.org/10.4324/9781351025102-34
  12. Cahyono, S., Ardianto, A., & Nasih, M. (2024). Breaking barriers: CEOs STEM educational background and corporate climate change disclosure. International Journal of Accounting & Information Management, 32(4), 651-684. doi:https://doi.org/10.1108/IJAIM-10-2023-0268
  13. Chen, L., & Tsang, A. (2017). CEO tenure and corporate social responsibility (CSR) reporting. Fairfax: George Mason Univerisity, 1-51.
  14. Cho, C. H., Bohr, K., Choi, T. J., Partridge, K., Shah, J. M., & Swierszcz, A. (2020). Advancing sustainability reporting in Canada: 2019 report on progress. Accounting Perspectives, 19(3), 181-204. doi:https://doi.org/10.1111/1911-3838.12232
  15. Chua, M., Ab Razak, N. H., Nassir, A. M., & Yahya, M. H. (2022). Dynamic capital structure in Indonesia: does the education and experience of CEOs matter? Asia Pacific Management Review, 27(1), 58-68. doi:https://doi.org/10.1016/j.apmrv.2021.05.003
  16. Das, M. (2022). Corporate Sustainable Practices and Profitability–Compatible? Journal of economics and management sciences, 5(2), p13-p13. doi:https://doi.org/10.30560/jems.v5n2p13
  17. Dey, D., Richards, L., Arora, M., Boyle, E., Bryson, R., Jackman, S., . . . Shirazi, C. (2024). Overview of climate disclosures. British Actuarial Journal, 28(e13). doi:https://doi.org/10.1017/S135732172300017X
  18. Eleftheriadis, I. M., & Anagnostopoulou, E. G. (2015). Relationship between corporate climate change disclosures and firm factors. Business Strategy and the Environment, 24(8), 780-789. doi:https://doi.org/10.1002/bse.1845
  19. Fuadi, F., Rubihani, D., Puspitasari, S., Sinatria, N., & Pasangka, P. H. (2024). The role of CEO characteristics in enhancing carbon emission disclosure: Evidence from Indonesia. Hasanuddin Economics and Business Review, 8(2), 96-110. doi:https://doi.org/10.26487/hebr.v8i2.5606
  20. Gabr, D. H., & ElBannan, M. A. (2025). Is it worth it to go green? ESG disclosure, carbon emissions and firm financial performance in emerging markets. Review of Accounting and Finance, 24(2), 193-217. doi:https://doi.org/10.1108/RAF-01-2024-0027
  21. Ghani, E. K., Jamal, J., Puspitasari, E., & Gunardi, A. (2018). Factors influencing integrated reporting practices among Malaysian public listed real property companies: A sustainable development effort. International Journal of Managerial and Financial Accounting, 10(2), 144-162. doi:https://doi.org/10.1504/IJMFA.2018.091662
  22. Gholami, A., Sands, J., & Rahman, H. U. (2022). Environmental, social and governance disclosure and value generation: is the financial industry different? Sustainability, 14(5). doi:https://doi.org/10.3390/su14052647
  23. Hashim, U. J., & Rahman, R. A. (2012). Internal corporate governance mechanisms and audit report lag: A study of Malaysian listed companies. Corporate Board: Role, Duties & Composition, 8(2), 147-162. doi:https://doi.org/10.22495/cbv8i3art4
  24. Hsueh, L. (2022). Do businesses that disclose climate change information emit less carbon? Evidence from S&P 500 firms. Climate Change Economics, 13(02). doi:https://doi.org/10.1142/S2010007822500038
  25. Husmann, A. (2024). Sustainability reporting and the role of stock exchanges: Evidence from the TCFD recommendations. Available at SSRN 4727723, 1-37. doi:https://dx.doi.org/10.2139/ssrn.4727723
  26. Hussain, M. J., Nie, D., Tian, G., & Ashraf, A. (2024). A new broom sweeps clean? Evidence from CEO tenure and global reporting initiative adoption in China. Meditari Accountancy Research, 32(2), 346-366. doi:https://doi.org/10.1108/MEDAR-12-2020-1119
  27. Karim, S., Manab, N. A., & Ismail, R. (2020). The interaction effect of independent boards on corporate governance-corporate social responsibility (CG-CSR) and performance nexus. Asian Academy of Management Journal, 25(1). doi:https://doi.org/10.21315/aamj2020.25.1.4
  28. Khalid, F., Ye, Z., Voinea, C. L., & Naveed, K. (2022). Carbon disclosure project: Chinese chief executive officer background and corporate voluntary climate change reporting. Carbon Management, 13(1), 321-336. doi:https://doi.org/10.1080/17583004.2022.2083983
  29. Khan, M. T., Al?Jabri, Q. M., & Saif, N. (2021). Dynamic relationship between corporate board structure and firm performance: Evidence from Malaysia. International Journal of Finance & Economics, 26(1), 644-661. doi:https://doi.org/10.1002/ijfe.1808
  30. Kouloukoui, D., Sant'Anna, Â. M. O., da Silva Gomes, S. M., de Oliveira Marinho, M. M., de Jong, P., Kiperstok, A., & Torres, E. A. (2019). Factors influencing the level of environmental disclosures in sustainability reports: Case of climate risk disclosure by Brazilian companies. Corporate social responsibility and environmental management, 26(4), 791-804. doi:https://doi.org/10.1002/csr.1721
  31. Lavin, J. F., & Montecinos-Pearce, A. A. (2021). ESG disclosure in an emerging market: an empirical analysis of the influence of board characteristics and ownership structure. Sustainability, 13(19), 10498. doi:https://doi.org/10.3390/su131910498
  32. Lee, C.-C., Wang, C.-W., Thinh, B. T., Purnama, M. Y. I., & Sharma, S. S. (2024). Corporate leverage and leverage speed of adjustment: Does environmental policy stringency matter? Pacific-Basin Finance Journal, 85. doi:https://doi.org/10.1016/j.pacfin.2024.102344
  33. Lee, J., Sim, M., Kim, Y., & Lee, C. (2024). Strategic pathways to alternative marine fuels: empirical evidence from shipping practices in South Korea. Sustainability, 16(6), 2412. doi:https://doi.org/10.3390/su16062412
  34. Lewellyn, K. B., & Fainshmidt, S. (2017). Effectiveness of CEO power bundles and discretion context: Unpacking the ‘fuzziness’ of the CEO duality puzzle. Organization Studies, 38(11), 1603-1624. doi:https://doi.org/10.1177/0170840616685364
  35. Lewis, B. W., Walls, J. L., & Dowell, G. W. (2014). Difference in degrees: CEO characteristics and firm. Strategic management journal, 35, 712-722. doi:http://dx.doi.org/10.1002/smj.2127
  36. Lin, Y.-f., Yeh, Y. M. C., & Yang, F.-m. (2014). Supervisory quality of board and firm performance: a perspective of board meeting attendance. Total Quality Management & Business Excellence, 25(3-4), 264-279. doi:https://doi.org/10.1080/14783363.2012.756751
  37. Malinovskaya, N. y. V. (2022). Approaches to climate-related risk disclosure in the draft international climate-related disclosure standard. International Accounting, 7(493), 728-746. doi:https://doi.org/10.24891/ia.25.7.728
  38. Melloni, G. (2020). Climate change reporting: a commentary on key issues. Die Unternehmung - Swiss Journal of Business Research and Practice, 74(3), 312-323. doi:https://doi.org/10.5771/0042-059X-2020-3-312
  39. Mgbemena, C. I., Ebe, E. C., Azubike, J., & Obiekwe, J. C. (2024). Leverage Ratio, Risk-Taking and Stability Vis-A-Vis Nigerian Banking Sector. International Journal of Research and Innovation in Social Science, 8(9), 2768-2779. doi:https://doi.org/10.47772/ijriss.2024.8090231
  40. Mnif, Y., & Znazen, O. (2024). Do CEOs’ characteristics affect compliance with IFRS 7 risk disclosure requirements? Journal of Financial Reporting and Accounting. doi:https://doi.org/10.1108/JFRA-01-2024-0038
  41. Mousa, G., & Hassan, N. T. (2015). Legitimacy theory and environmental practices: Short notes. International Journal of Business and Statistical Analysis, 2(01). doi:https://doi.org/10.12785/ijbsa/020104
  42. Mursalim, -., Mallisa, M., & Kusuma, H. (2017). Capital structure determinants and firms’ performance: empirical evidence from Thailand, Indonesia and Malaysia. Polish Journal of Management Studies, 16(1), 154-164. doi:https://doi.org/10.17512/pjms.2017.16.1.13
  43. Muttakin, M. B., & Khan, A. (2025). CEO tenure, board monitoring and competitive corporate culture: how do they influence integrated reporting? Journal of Accounting Literature, 47(1), 75-99. doi:https://doi.org/10.1108/JAL-02-2023-0030
  44. Nasih, M., Harymawan, I., Paramitasari, Y. I., & Handayani, A. (2019). Carbon emissions, firm size, and corporate governance structure: Evidence from the mining and agricultural industries in Indonesia. Sustainability, 11(9), 2483. doi:https://doi.org/10.3390/su11092483
  45. Nosheen, S., Naveed-ul-Haq, & Khan, T. M. (2020). ASEAN countries CG disclosure practices: a comparative analysis of one-tier and two-tier board structures. International Journal of Business Governance and Ethics, 14(3), 317-335. doi:https://doi.org/10.1504/IJBGE.2020.108096
  46. Nuzula, N. F. (2019). Does Environmental Risk Affect the Firms’ Financial Performance? Paper presented at the IOP Conference Series: Earth and Environmental Science.
  47. O'Dwyer, B., & Unerman, J. (2020). Shifting the focus of sustainability accounting from impacts to risks and dependencies: Researching the transformative potential of TCFD reporting. Accounting, Auditing & Accountability Journal, 33(5), 1113-1141. doi:https://doi.org/10.1108/AAAJ-02-2020-4445
  48. Oehoedoe, M. S., Minanurohman, A., & Fitriani, N. (2023). CEOs accounting background and ESG disclosure: empirical evidence of Indonesian listed companies. Jurnal Dinamika Akuntansi Dan Bisnis, 10(1), 81-98. doi:https://doi.org/10.24815/jdab.v10i1.28558
  49. Omar, N. B., & Amran, A. (2017). Corporate governance and climate change reporting in Malaysia. International Journal of Academic Research in Business and Social Sciences, 7(12), 222-240. doi:https://doi.org/10.6007/ijarbss/v7-i12/3607
  50. Park, J. D., Nishitani, K., Kokubu, K., Freedman, M., & Weng, Y. (2023). Revisiting sustainability disclosure theories: Evidence from corporate climate change disclosure in the United States and Japan. Journal of cleaner production, 382. doi:https://doi.org/10.1016/j.jclepro.2022.135203
  51. Pratama, A., Jaenudin, E., & Anas, S. (2022). Environmental, social, governance sustainability disclosure using international financial reporting sustainability standards S1 in Southeast Asian companies: a preliminary assessment. International Journal of Energy Economics and Policy, 12(6), 456-472. doi:https://doi.org/10.32479/ijeep.13581
  52. Principale, S., & Pizzi, S. (2023). The determinants of TCFD reporting: A focus on the Italian context. Administrative Sciences, 13(2), 1-12. doi:https://doi.org/10.3390/admsci13020061
  53. Rashid, K., Islam, S. M., & Nuryanah, S. (2014). The Role of Regulatory Authority in Affecting Firm Performance. Corporate Ownership and Control, 11(4 Continued 6), 539-548. doi:https://doi.org/10.22495/cocv11i4c6p4
  54. Ratri, M. C., Harymawan, I., & Kamarudin, K. A. (2021). Busyness, tenure, meeting frequency of the CEOs, and corporate social responsibility disclosure. Sustainability, 13(10), 1-22. doi:https://doi.org/10.3390/su13105567
  55. Razali, M. W. M., Roslanie, F. A. B., Brahmana, R. K., & Ali, S. S. S. (2016). Does CEO characteristics play important role on Malaysian firms’ environmental disclosure. International Journal of Business Research, 16(2), 27-36. doi:https://doi.org/10.18374/ijbr-16-2.2
  56. Saeedi, A., Daghani, R., & Hajian, N. (2020). Firm-Specific characteristics and the disclosure level: Evidence from the Tehran stock exchange. Journal of Applied Business Research (JABR), 36(4), 129-152. doi:https://doi.org/10.19030/jabr.v36i4.10349
  57. Sambuaga, E. A. (2024). The Effect of Sustainability Disclosure and Company Performance: Profit or Image? JIA (Jurnal Ilmiah Akuntansi), 9(1), 35-53. doi:https://doi.org/10.23887/jia.v9i1.54045
  58. Shahida, S., Ba M, H.-S., & Fuad, S. H. (2019). Does MSPO certification matter for profitability of Malaysian palm oil companies? International Journal of Economics & Management, 13(2).
  59. Shui, X., Zhang, M., & Smart, P. (2023). Climate change disclosure and the promise of response?ability and transparency: a synthesizing framework and future research agenda. European Management Review, 20(1), 145-158. doi:https://doi.org/10.1111/emre.12514
  60. Tan, K.-L., Ho, J. M., Pidani, R., & Goveravaram, A. D. (2022). Doing good does you good? The financial impact of individual CSR dimensions: A Malaysian context. Social Responsibility Journal, 18(1), 43-67. doi:https://doi.org/10.1108/SRJ-04-2020-0146
  61. Tang, K. H. D. (2023). A review of environmental, social and governance (ESG) regulatory frameworks: Their implications on Malaysia. Tropical Aquatic and Soil Pollution, 3(2), 168-183. doi:https://doi.org/10.53623/tasp.v3i2.282
  62. Ting, I. W. K., Azizan, N. A. B., & Kweh, Q. L. (2016). Managerial overconfidence and leverage decision. The moderating effect of human governance in Malaysia. Journal for Global Business Advancement, 9(1), 38-51. doi:https://doi.org/10.1504/JGBA.2016.074894
  63. Triyani, A., Setyahuni, S. W., & Kiryanto, K. (2020). The effect of environmental, social and governance (ESG) disclosure on firm performance: The role of CEO tenure. Jurnal Reviu Akuntansi Dan Keuangan, 10(2), 261-270. doi:https://doi.org/10.22219/jrak.v10i2.11820
  64. Troshani, I., & Rowbottom, N. (2024). Corporate sustainability reporting and information infrastructure. Accounting, Auditing & Accountability Journal, 37(4), 1209-1237. doi:https://doi.org/10.1108/AAAJ-01-2023-6244
  65. Ulinnuha, K. S., Harymawan, I., & Aini, S. N. (2024). CEO education from Reputable University and ESG disclosure: Evidence from Indonesia. Jurnal Dinamika Akuntansi Dan Bisnis, 11(1), 1-14. doi:https://doi.org/10.24815/jdab.v11i1.33305
  66. Vourvachis, P., & Woodward, T. (2015). Content analysis in social and environmental reporting research: trends and challenges. Journal of Applied Accounting Research, 16(2), 166-195. doi:https://doi.org/10.1108/JAAR-04-2013-0027
  67. Wahyuni, P. D. (2025). The Role of IFRS S1 and S2 in Enhancing Transparency and Accountability of ESG Reports: A Systematic Review. Asian Journal of Economics, Business and Accounting, 25(1), 1-12.
  68. Wan, Y., Hong, Z., Liu, W., & Cui, J. (2023). Executives’ education: A catalyst for enhanced ESG disclosure. Finance Research Letters, 58. doi:https://doi.org/10.1016/j.frl.2023.104429
  69. Wang, C., Gou, L., & Li, X. (2022). Is education beneficial to environmentally friendly behaviors? Evidence from CEOs. International journal of environmental research and public health, 19(18), 11391. doi:https://doi.org/10.3390/ijerph191811391
  70. Wang, G., DeGhetto, K., Ellen, B. P., & Lamont, B. T. (2019). Board antecedents of CEO duality and the moderating role of country?level managerial discretion: a meta?analytic investigation. Journal of management studies, 56(1), 172-202. doi:https://doi.org/10.1111/joms.12408
  71. Yadav, R., & Yadava, R. N. (2023). Assessing sustainability reporting of Indian infrastructure firms. SocioEconomic Challenges, 7(2), 119-129. doi:https://doi.org/10.21272/sec.7(2).119-129.2023
  72. Yasser, Q. R., & Mamun, A. A. (2016). The relationship between board leadership structure and earnings management in Asia-Pacific. Accounting research journal, 29(4), 413-428. doi:https://doi.org/10.1108/ARJ-06-2015-0080
  73. Yu, E. P. Y., Guo, C. Q., & Luu, B. V. (2018). Environmental, social and governance transparency and firm value. Business Strategy and the Environment, 27(7), 987-1004. doi:https://doi.org/10.1002/bse.2047
  74. Zhu, C., Li, N., & Ma, J. (2023). Environmental backgrounds of CEOs and corporate environmental management information disclosure: The mediating effects of financing constraints and media attention. Corporate social responsibility and environmental management, 30(6), 2885-2905. doi:https://doi.org/10.1002/csr.2522

Author Biography

Ummi Junaidda Universiti Sultan Zainal Abidin (UniSZA), Kuala Terengganu, Malaysia

Senior Lecturer at School of Accountancy, Faculty of Business and Management, University Sultan Zainal Abdidin

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors

1 . Farah Syafiqa Adlina
Universiti Sultan Zainal Abidin (UniSZA), Kuala Terengganu, Malaysia
2 . Ummi Junaidda
Universiti Sultan Zainal Abidin (UniSZA), Kuala Terengganu, Malaysia

Downloads

View PDF

Statistics

Downloads

Download data is not yet available.

Issue

Vol. 7 No. 2 (2025): September
Section: Articles
Contact Us
WhatsApp Instagram Facebook LinkedIn Email