An empirical examination of the relationship between environmental disclosure and financial performance in Malaysia

This paper aims to examine the link between environmental reporting practices and firm performance of Malaysia Public Listed Companies for the year 2009.By using content analysis, this study reveals that 68.1% of 299 companies provide environmental information in their annual reports with an average of 7.82 sentences and 18.3% of the companies have separate environmental section in their annual reports. Insignificant relationship is found between environmental reporting and return on assets but significant relationship between environmental reporting with return on equity is reported. Additionally, company size, leverage and industry sensitivity companies found to have significant relation with firm performance