Corporate Governance and Islamic Corporate Social Responsibility Disclosures: Shari’ah Compliant Companies in Malaysia

• Arsad, Syahiza ^[2] ; Said, Roshima ^[1] ; Yusoff, Haslinda ^[1] ; Ahmad, Rahayati ^[3]
  1. [1] Universiti Teknologi MARA

     Universiti Teknologi MARA

     Malasia

     
  2. [2] Kulliyyah Muamalat and Management Sciences, Universiti Islam Antarabangsa Sultan Abdul Halim Mu’adzam Shah, Kedah
  3. [3] Kulliyyah Muamalat and Management Sciences, Universiti Islam Antarabangsa Sultan Abdul Halim Mu'adzam Shah, Kedah, Malaysia

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• Localización: Estudios de economía aplicada, ISSN 1133-3197, ISSN-e 1697-5731, Vol. 39, Nº Extra 10, 2021 (Ejemplar dedicado a: Special Issue: Recent developments in Economics, Business and Management)
• Idioma: inglés
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• Resumen

  • The paper attempts to examine the relationship between six (6) Corporate Governance mechanisms (namely board matters, nomination matters, audit matters, remuneration matters, communication matters and risk management matters) of Shari’ah Compliant Companies (ShCC) with Islamic Corporate Social Responsibility (i-CSR) disclosure. The i-CSR disclosure index was developed by incorporated the five values of Maqasid Shari’ah and Maslahah. While, this study employed the corporate governance index based on the Malaysian Code on Corporate Governance (MCCG) 2007 (Securities Commission, 2007b), MCCG 2012 (Securities Commission, 2012), Corporate Governance Guide issued by Bursa Malaysia (Bursa Malaysia, 2012), and MCCG Index 2011 from the Minority Shareholder Watchdog Group (MSWG, 2011); Omar & Abdul Rahman, (2009) and Mohammed et al. (2009).  The research used content analysis and a sample of 187 ShCC annual reports from 2008 to 2013. STATA was used to assess the relationship between CG mechanisms and i-CSR disclosure in this analysis. The result of the relationship between CG mechanisms and i-CSR disclosure after statistically control by firm size (proxy by total assets) and profitability (proxy by return on assets, net profit margin and return on equity) showed that only remuneration matters (RM), communication matters (CM) and risk management matters (RK) positive and significantly influenced the i-CSR disclosure.