Can Stakeholder Theory Add To Our Understanding Of Malaysian Environmental Reporting Attitudes?

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Evangeline Elijido-Ten

Abstract

This research aims to ascertain whether stakeholder theory could, in fact, add to our understanding of the corporate environmental disclosure attitudes from the developing country perspectives. Multiple ordinary least squares regression was used where Ullmann’s (1985) three dimensional stakeholder model was operationalized to test whether the quality or quantity of annual report environmental disclosures (AREDs) were associated with the proxies for stakeholder power, strategic posture and economic performance. Of the three stakeholders represented, only government power (GP) was significant; the other two- shareholder power (SP) and creditor power (CP)- were not significantly related to AREDs. The results also showed that proxies for strategic posture were significant and positively relate to AREDs while the economic performance proxy was not. Subsequent interviews with CEOs of disclosing firms confirmed that while AREDs were used to disseminate environmental information to stakeholders, there was not much demand from both shareholders and creditors given the low level environmental awareness in Malaysia.Keywords: Stakeholder theory, annual report environmental disclosures, Malaysian listed companies.

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How to Cite
ELIJIDO-TEN, Evangeline. Can Stakeholder Theory Add To Our Understanding Of Malaysian Environmental Reporting Attitudes?. Management & Accounting Review (MAR), [S.l.], v. 8, n. 2, p. 85-110, dec. 2009. ISSN 2550-1895. Available at: <http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/259>. Date accessed: 24 sep. 2018.
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