Impact of board capabilities on environmental and social governance (ESG) practices: Evidence from Malaysia

• Published in: International Journal of Business and Management Science
• Main Author: Ismail A.M.; Mohd Adnan Z.H.; Clark C.; Said J.
• Format: Article
• Language: English
• Published: Society for Alliance, Fidelity and Advancement (SAFA) 2019
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85078357582&partnerID=40&md5=4db1226e450ca10be19ca8e22e5d4cc8
• ISSN: 18376614

For investment purposes, investors not only look at financial performance but also non-financial performance elements, such as the corporate governance and environmental and social governance (ESG) practices. This paper examines the relationship among ESG practices of companies in Malaysia by focusing on the function of corporate governance. Data were obtained from listed companies in the FTSE4Good Bursa Malaysia from 2012–2016. Regression analysis shows that ESG practices have a significant relationship with board size, diversity and independence. The results outlined the important factors that create an impact on ESG practices given that investors are focused on company sustainability. © 2019, Society for Alliance, Fidelity and Advancement (SAFA). All rights reserved.