The impact of environmental crimes and profitability on environmental disclosure in Malaysian SME sector: The role of leverage
This research investigates the intricate connections between environmental crimes, profitability, leverage, and environmental disclosure in Small and Medium Enterprises (SMEs) in Malaysia from 2014 to 2019. The study adopts legitimacy theory as its theoretical lens. This study focuses on the analysi...
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my.uniten.dspace-345192024-10-14T11:20:21Z The impact of environmental crimes and profitability on environmental disclosure in Malaysian SME sector: The role of leverage Mohamed Adnan S. Alahdal W.M. Alrazi B. Mat Husin N. 57203839730 58101982600 46461112300 57439406000 environmental crimes environmental disclosure leverage SME This research investigates the intricate connections between environmental crimes, profitability, leverage, and environmental disclosure in Small and Medium Enterprises (SMEs) in Malaysia from 2014 to 2019. The study adopts legitimacy theory as its theoretical lens. This study focuses on the analysis of 116 SMEs that have been convicted by the Department of Environment (DOE) in Malaysia. The data used in this analysis includes information on environmental crimes from court cases published by the DOE, as well as company and financial attributes obtained from the Companies Commission of Malaysia. Additionally, environmental disclosure metrics were collected from corporate websites. In total, there are 696 observations included in this study. The study utilizes panel data analysis to uncover the fundamental dynamics. The results of the study indicate that companies that have been convicted of wrongdoing tend to offer limited levels of environmental disclosure on their digital platforms. It is worth noting that guilty firms that are larger and more profitable tend to demonstrate increased levels of environmental disclosure. The correlation between environmental crimes and leverage has been identified as a significant factor in driving higher levels of environmental disclosure. However, the relationship between leverage, profitability, and disclosure levels did not have a similar interactive effect. The research recognizes that environmentally prosecuted enterprises face a perceived threat to their legitimacy. However, this acknowledgement is limited to a specific time frame and focuses on selected characteristics that explain differences in environmental disclosures. The information obtained necessitates a reassessment and potential improvement of existing requirements for disclosure to include provisions that prioritize sustainability, particularly within the private sector. This research contributes to the ongoing discussion on the paradox between environmental performance and transparency by focusing on a developing nation�s context. It offers a more nuanced understanding of legitimacy theory within the specific operational environment of SMEs. � 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. Final 2024-10-14T03:20:21Z 2024-10-14T03:20:21Z 2023 Article 10.1080/23311975.2023.2274616 2-s2.0-85176002342 https://www.scopus.com/inward/record.uri?eid=2-s2.0-85176002342&doi=10.1080%2f23311975.2023.2274616&partnerID=40&md5=4a95ffd64d9df2825d7b1869adb0ea81 https://irepository.uniten.edu.my/handle/123456789/34519 10 3 2274616 All Open Access Gold Open Access Cogent OA Scopus |
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environmental crimes environmental disclosure leverage SME |
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environmental crimes environmental disclosure leverage SME Mohamed Adnan S. Alahdal W.M. Alrazi B. Mat Husin N. The impact of environmental crimes and profitability on environmental disclosure in Malaysian SME sector: The role of leverage |
| description |
This research investigates the intricate connections between environmental crimes, profitability, leverage, and environmental disclosure in Small and Medium Enterprises (SMEs) in Malaysia from 2014 to 2019. The study adopts legitimacy theory as its theoretical lens. This study focuses on the analysis of 116 SMEs that have been convicted by the Department of Environment (DOE) in Malaysia. The data used in this analysis includes information on environmental crimes from court cases published by the DOE, as well as company and financial attributes obtained from the Companies Commission of Malaysia. Additionally, environmental disclosure metrics were collected from corporate websites. In total, there are 696 observations included in this study. The study utilizes panel data analysis to uncover the fundamental dynamics. The results of the study indicate that companies that have been convicted of wrongdoing tend to offer limited levels of environmental disclosure on their digital platforms. It is worth noting that guilty firms that are larger and more profitable tend to demonstrate increased levels of environmental disclosure. The correlation between environmental crimes and leverage has been identified as a significant factor in driving higher levels of environmental disclosure. However, the relationship between leverage, profitability, and disclosure levels did not have a similar interactive effect. The research recognizes that environmentally prosecuted enterprises face a perceived threat to their legitimacy. However, this acknowledgement is limited to a specific time frame and focuses on selected characteristics that explain differences in environmental disclosures. The information obtained necessitates a reassessment and potential improvement of existing requirements for disclosure to include provisions that prioritize sustainability, particularly within the private sector. This research contributes to the ongoing discussion on the paradox between environmental performance and transparency by focusing on a developing nation�s context. It offers a more nuanced understanding of legitimacy theory within the specific operational environment of SMEs. � 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. |
| author2 |
57203839730 |
| author_facet |
57203839730 Mohamed Adnan S. Alahdal W.M. Alrazi B. Mat Husin N. |
| format |
Article |
| author |
Mohamed Adnan S. Alahdal W.M. Alrazi B. Mat Husin N. |
| author_sort |
Mohamed Adnan S. |
| title |
The impact of environmental crimes and profitability on environmental disclosure in Malaysian SME sector: The role of leverage |
| title_short |
The impact of environmental crimes and profitability on environmental disclosure in Malaysian SME sector: The role of leverage |
| title_full |
The impact of environmental crimes and profitability on environmental disclosure in Malaysian SME sector: The role of leverage |
| title_fullStr |
The impact of environmental crimes and profitability on environmental disclosure in Malaysian SME sector: The role of leverage |
| title_full_unstemmed |
The impact of environmental crimes and profitability on environmental disclosure in Malaysian SME sector: The role of leverage |
| title_sort |
impact of environmental crimes and profitability on environmental disclosure in malaysian sme sector: the role of leverage |
| publisher |
Cogent OA |
| publishDate |
2024 |
| _version_ |
1814061183806734336 |
| score |
13.222552 |