DETERMINANTS OF ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG) DISCLOSURE AMONG PUBLICLY LISTED COMPANIES IN MALAYSIA: A CONCEPTUAL REVIEW

Abstract

This conceptual paper analyzes the key determinants of  Environmental, Social, and Governance (ESG) disclosure by Malaysian publicly listed companies (PLCs). As ESG practices continue to gain global prominence, Malaysian regulators have raised the stakes to drive sustainability reporting through guidelines aligned with global standards. Despite these efforts, levels of ESG disclosure remain low and inconsistent in Malaysia. The objective of the study is to identify and synthesize internal and external factors influencing ESG disclosure using stakeholder theory, legitimacy theory, and institutional theory. The methodology involves an extensive review of prior academic literature and regulatory documents. The findings reveal that firm level factors, board characteristic, internal governance and data governancesignificantly influence ESG disclosure levels in Malaysia. This study provides valuable insights for regulators, corporate leaders, and researchers seeking to enhance ESG disclosure. Future empirical research is recommended to validate the conceptual findings and explore the impact of emerging factors such as digitalization and evolving regulations.