Societal Wellbeing Disclosure, Corporate Governance, and‎Financial Reporting Quality: Evidence from Malaysia

  • Authors

    • Nur Izzah Nasuha Mohd Zaim Tunku Puteri Intan Safinaz School of Accountancy, University Utara Malaysia
    • Nor Asma Lode Tunku Puteri Intan Safinaz School of Accountancy, University Utara Malaysia
    • Wan Adibah Wan Ismail College of Business and Economics, United Arab Emirates University
    https://doi.org/10.14419/wtfn7b90

    Received date: September 15, 2025

    Accepted date: September 27, 2025

    Published date: October 9, 2025

  • Societal Wellbeing; Financial Reporting; Disclosures

  • Abstract

    This study examines the relationship between societal well-being disclosure, governance mechanisms, and financial reporting quality (FRQ) ‎among Malaysian listed firms. Using 500 firm-year observations from 2018 to 2022, FRQ is measured using a modified Dechow and Dichev’s ‎accrual quality model. Regression analysis shows that female board representation is the only governance variable significantly associated with ‎improved FRQ. Other governance structures, including board size, independence, audit committee characteristics, leadership separation, and ‎meeting frequency, are not significant. Societal well-being disclosure also does not significantly influence FRQ, suggesting that sustainability ‎reporting remains largely symbolic in Malaysia. These findings extend agency and signaling theory by demonstrating that gender diversity ‎strengthened monitoring and reporting integrity, while also highlighting a gap in legitimacy and stakeholder theory, where societal well-being has ‎yet to influence financial reporting. Practically, the results imply that regulators should strengthen gender diversity initiatives and improve ‎substantive governance practices beyond structural compliance‎.

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    Zaim , N. I. N. M. ., Lode , N. A. ., & Ismail , W. A. W. . (2025). Societal Wellbeing Disclosure, Corporate Governance, and‎Financial Reporting Quality: Evidence from Malaysia. International Journal of Accounting and Economics Studies, 12(6), 344-351. https://doi.org/10.14419/wtfn7b90