Firm and Board Characteristics, and E-Waste Disclosure: A Study in the Era of Digitalisation

• Main Authors: Hafizah Abd-Mutalib, Che Zuriana Muhammad Jamil, Rapiah Mohamed, Nor Atikah Shafai, Saidatul Nurul Hidayah Jannatun Naim Nor-Ahmad
• Format: Article
• Language: English
• Published: MDPI AG 2021-09-01
• Series: Sustainability
• Subjects: e-waste; disclosure; digitalisation; annual reports; Malaysia
• Online Access: https://www.mdpi.com/2071-1050/13/18/10417

Business sectors face the advent of digitalisation, bringing attention to e-waste, or waste generated from obsolete electrical and electronic appliances. In addressing this issue, the study intends to examine e-waste disclosure by Bursa Malaysia listed firms. Specifically, this study investigates the extent and quality of e-waste disclosure, observes whether the reporting differs between industries and the boards on which the firms are listed, and investigates if e-waste disclosure is associated with firm and board characteristics. A total of 92 firms in the telecommunication and technology industries, listed on the Main and Ace boards of Bursa Malaysia, were selected as samples. The results reveal that despite an indication that e-waste reporting applies to the two sectors, only 16% of the firms report their commitment to managing e-waste. The disclosure shows how e-waste reporting is low in quantity and is circulated with only very general, qualitative information. An independent sample <i>t</i>-test reveals that firms listed on the Main board report significantly more e-waste information than their counterparts. Another <i>t</i>-test indicates an insignificant difference in e-waste disclosure between the firms under study. Furthermore, firm size significantly impacts e-waste disclosure, while firm performance, board size, and board gender diversity show insignificant impact. The results of this preliminary study shed some light on business firms’ commitment towards their e-waste management and reporting, which is a substantial factor for Malaysia to achieve environmental sustainability.