Sustainability disclosure and financial performance: evidence in Malaysia public listed companies

Abstract

The role of information disclosure is important in the capital market as it reflects the business strategies to win the investors' confidence and increase the firms' financial performance. By adopting the generalised method of moments (GMM) estimation approach, this paper aims to examine the relationship between sustainability disclosure and the firm financial performance for Malaysian public listed firms for the period 2013 to 2017. This paper will refine the theoretical background of stakeholder theory associated with the sustainability disclosure. Stakeholder theory is used to capture the inherent interrelationships of CSR disclosure and firm performance. The findings of this study suggest that the sustainability disclosure has a significant and positive impact on the performance of the listed companies.