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Saudi Journal of Business and Management Studies (SJBMS)
Volume-4 | Issue-01 | 1-7
Original Research Article
Effective Integrated Reporting <IR> Practices of the Malaysian Public Companies in the Industrial Products Segment of the Malaysian Stock Exchange
Chin Fook Kheong, Elatrash Munir Juma M
Published : Jan. 16, 2019
DOI : 10.36348/sjbms.2019.v04i01.001
Abstract
Introduction: Sustainability issues and initiatives are gaining emphasis to address shareholder interests and attract investment. Malaysian public listed companies (PLCs) are encouraged to adopt Integrated Reporting <IR> framework for disclosing both financial and non-financial information in their annual reports. This paper presents the findings of research on the adoption of <IR> by Malaysian PLCs. Methodology: Data was collected from 213 PLCs for the period 2010 – 2016. Based on the literature, a conceptual model was developed and tested by four hypotheses on the relationship between financial performance, strategy disclosure, governance disclosure, performance disclosure and prospects disclosure. The data was analyzed by descriptive statistics and multiple regression analysis. Results: The results indicated that the firms’ prospects (future outlook) disclosure and organizational strategy disclosure make significant contributions to the average market value of the firms. Therefore, it is important for the firms have the competences to effectively engage in the <IR> using the <IR> framework. Conclusion and Recommendations: It is recommended that the Malaysian authorities should make the <IR> mandatory and provide training on <IR>. Malaysian PLCs should provide periodic integrated reports, comply with environmentally friendly standards and implement sustainability practices to fully participate in global supply chains
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