ESG in the boardroom: evidence from the Malaysian market

Kamaludin, Kamilah; Ibrahim, Izani; Sundarasen, Sheela; Faizal, OVA

doi:10.1186/s40991-022-00072-2

International Journal of Corporate Social Responsibility

Table 7 Year-by-year analysis of the relations among board independence, diversity, and diligence and environmental, social and governance disclosure score

From: ESG in the boardroom: evidence from the Malaysian market

Variables		Year-by-year level of disclosure analysis
		2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
ESG_score	% of INDEP_DIR	0.102	-0.049	0.117	0.009	0.267	0.084	0.189	0.344^**	0.292^**	0.301^**	0.175^*	0.141^*	0.183^**	0.304^*
Environ		0.022	0.203	-0.103	-0.040	0.209	0.013	0.230	0.354^**	0.268^**	0.340^**	0.215^*	0.120	0.221^**	0.424^**
Social		0.393	0.053	0.290	0.212	0.255	0.208	0.431^**	0.330^**	0.196^*	0.271^**	0.235^*	0.2610^**	0.165	0.244
Governance		0.132	0.082	0.027	-0.029	0.161	0.023	0.102	0.160^**	0.117^*	0.147^**	0.087	0.037	0.084^*	0.071
ESG_score	% of WOB	-0.086	-0.089	-0.160	0.019	0.172	0.020	0.062	0.117	0.132	0.229^**	0.036	0.128	0.088	0.021
Environ		0.058	-0.005	0.055	0.103	0.339	0.352	0.336	0.550^**	0.183	0.207	-0.066	0.160	0.121	0.178
Social		-0.399	-0.711	-0.424^*	-0.027	0.042	0.426	0.393^**	0.564^**	0.203	0.416^**	-0.026	0.128	0.064	-0.209
Governance		-0.016	0.015	-0.081	-0.010	0.120	-0.018	-0.036	0.006	0.044	0.103^*	0.045	0.052	0.042	-0.114
ESG_score	# of BOARD_MEET	0.048	0.454	0.377	0.908^*	0.352	0.425	0.803^**	0.402	0.032	0.042	0.270	0.351	0.142	-0.245
Environ		0.448	0.372	0.299	0.632	-0.130	0.015	-0.048	-0.152	-0.093	0.205	0.471	0.164	-0.223	-0.434
Social		1.506	2.464	0.678	1.648^**	1.292	0.795	1.453^**	0.019	0.888	0.761	0.742	0.722	0.968^**	-0.263
Governance		0.067	0.108	0.168	0.348	0.348	0.291	0.501^**	0.253^*	0.197	0.168	0.216	0.385^**	0.158	0.032
ESG_score	ROA	0.051	0.265	0.169	0.425^*	0.267	0.37^**	0.442^**	0.409^**	0.432^**	0.361^**	0.153	0.298^**	0.142	0.532^*
Environ		-0.045	0.016	0.279	0.366	0.524^*	0.242	0.416^**	0.367^**	0.493^**	0.427^**	0.310^**	0.342^*	0.204	0.566
Social		-0.053	0.130	-0.017	0.334	0.408	0.427^*	0.341^**	0.290^**	0.441^**	0.235	0.163	0.272	-0.036	0.759^**
Governance		-0.027	0.057	-0.095	0.136	0.093	0.106	0.159^**	0.157^**	0.167^**	0.140^*	0.013	0.217^**	0.193	0.274
ESG_score	Log Firm Size	-0.353	0.783	-1.643	0.245	0.563	0.683	1.301	1.279	1.795^**	1.213	-0.128	0.406	0.600	0.667
Environ		-4.191^**	-5.038^*	-1.888	-1.903	-0.683	-2.175	-0.579	-0.440	0.672	-0.666	-0.273	0.636	1.115	0.130
Social		-2.933	-5.107	-5.302^**	-4.488^*	-3.321	-2.554	-2.816^*	-0.199	0.321	-0.691	-0.093	0.028	-0.489	1.577
Governance		-0.197	0.532	-0.889	0.267	-0.533	-0.111	-0.009	0.166	0.373	-0.145	-0.609^*	-0.111	0.207	0.704
ESG_score	Leverage	0.011	-0.007	0.034^**	0.002^**	0.001^**	0.043^**	0.009	0.017	-0.015	-0.004	0.012	0.007	0.011	0.022^*
Environ		0.028^*	0.046^**	0.020	0.001^**	0.001^**	0.067^**	-0.002	0.002	-0.026^**	-0.012	0.013	0.013	0.014	0.034^**
Social		0.018	0.024	0.058^**	0.003^**	0.000^**	0.032	0.005	-0.017	-0.043^**	-0.027^**	-0.001	-0.003	0.010	0.018
Governance		-0.007	-0.008	0.010	0.000	0.000^**	0.019^**	0.003	0.010	0.001	0.006	0.012^*	0.002	0.005	-0.004
ESG_score	Constant	13.479	7.188	24.963^**	8.512	-2.521	0.753	-10.725	-14.741	-8.403	-3.251	19.984^**	15.612^**	16.077^**	8.787
Environ		41.695^**	42.490^*	26.932^**	24.366	5.001	24.809^*	3.187	-6.166	-6.062	2.736	7.028	2.556	-1.317	-8.843
Social		14.780	46.800	51.483^**	42.398^**	31.700	26.649	15.398	8.389	9.490	16.093	19.866^*	15.900	27.554^**	12.623
Governance		44.773^**	38.416^**	56.157^**	47.935^**	46.288^**	47.855^**	42.927^**	39.463^**	41.358^**	44.233^**	53.010^**	50.080^**	48.091^**	49.345^**

Table 7 shows year-by-year analysis of board characteristics and composite ESG and individual disclosure scores. Significant results are concentrated from 2014 onward. ^****p < 0.000; ^***p < 0.01; ^**p < 0.05, ^*p < 0.10

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