ISSN: 2222-6990
Open access
Environmental disclosures have increased in recent years as the concerns on global environmental issues have been growing. As the activities of oil and gas industry deals with destructive operations, it is one of the industry which is considered as the most exposed industry to environmental matters which owes effort to be responsible in disclosing the information about the activities and maintain sustainable developments. This research is to investigate and explore the relationships of environmental performance and corporate governance towards the environmental disclosure of oil and gas companies operating in the upstream projects in Malaysia by adopting the Global Reporting Initiative (GRI) index. This study will apply an interpretative approach to social science research by using content analysis based on secondary data extracted from annual reports, sustainability reports, corporate social responsibility reports as well as companies' website. The research will be conducted on 54 annual reports of 27 oil and gas companies operating in Malaysia upstream projects from 2015 to 2016. Regression analysis and correlation will be used to examine the association between the variables of this research study. It is expected that there is a significant relationship of environmental performance and corporate governance towards the environmental disclosure. This study aspires to contribute to valuable knowledge which would suggest and outline the best practices for companies in disclosing their environmental disclosures.
Alonso-Almeida, M. D., Llach, J., & Marimon, F. (2013). A Closer Look at the ‘Global Reporting Initiative’ Sustainability Reporting as a Tool to Implement Environmental and Social Policies: A Worldwide Sector Analysis. Corporate Social Responsibility Environmental Management, 21(6), 318-335.
Association of Chartered Certified Accountants (ACCA) & Corporate Register.com. (2004). Towards Transparency: Progress on Global Sustainability Reporting. London: Corporate Register.
Bae Choi, B., Lee, D., & Psaros, J. (2013). An analysis of Australian company carbon emission disclosures. Pacific Accounting Review, 25(1), 58-79. doi:10.1108/01140581311318968
Bewley, K., & Li, Y. (2000). Disclosure of Environmental Information by Canadian Manufacturing Companies: A Voluntary Disclosure Perspective. Advances in Environmental Accounting and Management, 1, 201-226. doi:10.1016/S1479-3598(00)01011-6
Bonn, I. (2004). Effects of board structure on firm performance: A comparison of Japan and Australia. Asian Business and Management, 3(1), 105-125.
Braam, G. J., de Weerd, L. U., Hauck , M., & Huijbregts, M. A. (2015). Determinants of corporate environmental reporting: the importance of environmental performance and assurance. Journal of Cleaner Production(129), 724-734.
Brammer , S. J., & Pavelin, S. (2006). Corporate Reputation and Social Performance: The Importance of Fit. Journal of Management Studies, 43(3), 435-455.
Brown, N., & Deegan, C. (1998). The public disclosure of environmental performance information—a dual test of media agenda setting theory and legitimacy theory. Accounting and Business Research, 29, 21-41.
Cheng, & Shijun. (2008). Board size and the variability of corporate performance. Journal of Financial Economics, 87(1), 157-176.
Cheng, E. C., & Courtenay, S. M. (2006). Board composition, regulatory regime and voluntary disclosure. The International Journal of Accounting, 41(3), 262-289.
Cho, C. H., Michelon, G., & Patten, D. M. (2012). Impression Management in Sustainability Reports: An Empirical Investigation of the Use of Graphs. Accounting and the Public Interest, 12(1), 16-37. doi:10.2308/apin-10249
Cho, C. H., Roberts, R. W., & Patten, D. M. (2010). The Language of US Corporate Environmental Disclosure. Accounting, Organizations and Society, 35(4), 431-443. doi:10.1016/j.aos.2009.10.002
Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4-5), 303-327.
Cuesta, M. d., & Valor, C. (2013). Evaluation of the environmental, social and governance information disclosed by Spanish listed companies. Social Responsibility Journal, 9(2), 220-240. doi:10.1108/SRJ-08-2011-0065
da Rosa , D. S., Lunkes, D. J., Hein, D., Vogt, M., & Degenhart, L. (2014). Analysis of the determinants of disclosure of environmental impacts of Brazilian companies. Global Advanced Research Journal of Management and Business Studies, 3(6), 249-266.
Dye, R. A. (1985). Disclosure of Nonproprietary Information. Journal of Accounting Research, 23(1), 123-145. doi:10.2307/2490910
Eljayash, K. M., James, D., & Kong, D. (2012). The Quantity and Quality of Environmental Disclosure in Annual Reports of National Oil and Gas Companies in Middle East and North Africa. International Journal of Economics and Finance, 4(10), 201-217. doi:10.5539/ijef.v4n10p201
Elsayih, J. O. (2015). Corporate Governance and Carbon Performance and Disclosure: Australian Experience. Accounting Research Journal, 31(3), 405-422. doi:10.1108/ARJ-12-2015-0153
Eltaib, E. E. (2012). Environmental accounting disclosures of Australian Oil and Gas Companies. University of Wollongong Thesis Collection: Master of Accounting - Research Thesis, School of Accounting and Finance.
Gummerus, C. (2015). Evaluating Environmental Performance of Three Finnish Companies. Thesis - Centria University of Applied Sciences, Degree Pr
In-Text Citation: (Ghani & Rosdi, 2019)
To Cite this Article: Ghani, S. A., & Rosdi, D. (2019). The Relationship between Environmental Performance and Corporate Governance towards Environmental Disclosure of Oil and Gas Companies Operating in Malaysia Upstream Projects. International Journal of Academic Research in Business and Social Sciences, 9(3), 460–475.
Copyright: © 2019 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode