article · Sustainable Development
Integrated reporting serves as a corporate reporting approach designed to enhance information quality and support sustainable value creation. An evaluation of the top one hundred Malaysian publicly listed firms between 2016 and 2020 shows consistent growth in the adoption of integrated reporting, alongside broad corporate awareness of its benefits. The introduction of the Malaysian Code on Corporate Governance in 2017 positively influenced voluntary reporting disclosure quality, with companies demonstrating notable improvements after 2017. By 2020, monitored companies reached a reporting level of seventy percent across individual content elements. The risks and opportunities component emerged as the most frequently reported area, prompting several organisations to establish formal enterprise risk management frameworks and dedicated risk committees during these early adoption stages.
Transparent corporate reporting allows investors, regulators, and the public to evaluate how businesses generate sustainable long-term value. Demonstrating that national governance codes directly improve disclosure quality provides essential guidance for standard setters. It confirms that structured governance guidelines can successfully motivate companies to enhance accountability, upgrade internal risk management procedures, and provide higher-quality operational and financial information to stakeholders.
The developed integrated reporting disclosure index provides an applied assessment framework suitable for corporate advisory firms, auditing organisations, and compliance software providers. Having been applied and tested across five years of corporate market data, the methodology is ready for deployment by consultants and regulators seeking to evaluate enterprise disclosure completeness and support listed businesses in structuring risk management committees.
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Abstract Integrated reporting (IR) is the most recent business reporting paradigm that seeks to improve information quality and create sustainable value. This study investigates the impact of the Malaysian Code on Corporate Governance (MCCG) 2017 on the voluntary IR disclosure quality. Data is collected from the top 100 Malaysian public listed companies from 2016 to 2020. The study used content analysis and a developed IR disclosure index on panel data of companies that fully adopt IR. The results show ongoing growth in IR adoption among Malaysian companies; most of them are aware of its benefits. The study provides empirical evidence on the positive influence of MCCG 2017 on the IR disclosure quality using the random effects generalised least squares regression model. The trend analysis confirms that Malaysian companies enhanced their IR disclosure quality, especially after 2017. The results also show that the research sample has reported 70% for each IR content element in 2020. In this regard, the highest reported element is ‘risks and opportunities’. Thus, several companies have established enterprise risk management frameworks and risk committees. This study contributes to the literature by providing an intensive investigation of the IR practices in Malaysia's earliest adoption stages preceding and following the MCCG 2017.
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DOI: 10.1002/sd.2323
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