Nurul Rafeah Mohamed Yusuf¹, Corina Joseph^2♣, Eylia Nadiah Drahman¹, Davina Sharenya Chendang¹, and Monie Ramba¹

¹School of Foundation Studies, University of Technology Sarawak, Sarawak, Malaysia
²Faculty of Accountancy, Universiti Teknologi MARA, Sarawak Branch, Sarawak, Malaysia

ABSTRACT

Using the resource-based view theory (RBVT), this study examines the determinants (cash holdings, managerial ownership, firm reputation, corporate-elite networks, and board independence) of corporate philanthropy disclosure among Malaysian listed companies. A sample of 84 companies listed on Bursa Malaysia in 2024 was utilised to perform the empirical analysis. To measure the extent of corporate philanthropy disclosure, the study used a newly developed Modified Corporate Philanthropy Disclosure Index (MoCoPDi). The findings show that corporate-elite networks have a significant association with the extent of corporate philanthropy disclosure in 2024. However, there is no significant relationship between the managerial ownership, profitability, and board independence level of corporate philanthropy. Additionally, the results indicate that firms with well-connected elite members are more likely to adopt a strategic approach to corporate philanthropy disclosure. The findings from this study assist corporations in Malaysia and other regulatory entities in establishing guidelines for voluntary corporate philanthropy disclosure procedures within the Malaysian corporate sector. Given the high demand for corporate philanthropy information among various stakeholders in corporate reporting, Malaysian companies are increasingly expected to evaluate and amend their business plans by disclosing corporate philanthropy in their annual reports to create a sustainable competitive advantage.

Keywords: Corporate Governance, Corporate Philanthropy, Disclosure, Malaysia, Resource-Based View Theory