The Muamalat Newsletter Vol. 2 2024

FEM eNewsletter | December 2024 64 international business often have a deeper understanding of the importance of ESG, which can align the company’s practices with global sustainability benchmarks (Seow, 2024d). In Malaysia, CEOs possessing these attributes are pivotal in shaping their firm’s ESG agenda, responding effectively to both stakeholder expectations and regulatory pressures. By establishing a strategic vision centred around ESG goals, such leaders play a critical role in enhancing their firm’s reputation and contributing to its long-term success and value creation. 1. Conclusion In summary, the factors driving ESGdisclosure inMalaysian firms are diverse, encompassing financial performance, regulatory frameworks, corporate characteristics, board diversity, and CEO traits. Larger and more profitable firms tend to engage in more comprehensive ESG reporting, while firms with higher debt levels may prioritize financial objectives over sustainability efforts. . Regulatory initiatives have significantly bolstered ESG disclosure in Malaysia, though challenges remain in ensuring the depth and quality of the information provided. Gender diversity on boards has been shown to positively impact ESG transparency, particularly in governance and social dimensions, although its influence can be diluted in highly competitive environments. As ESG reporting continues to evolve, it is crucial for Malaysian firms to move beyond mere regulatory compliance, adopting a more strategic approach to sustainability. By integrating ESGconsiderations intocorporate governance and financial decisions, these firms can strengthen their resilience and create long-termvalue for both shareholders and broader stakeholders. References Alam, Md. M., Tahir, Y. M., Saif-Alyousfi, A. Y. H., Ali, W. B., Muda, R., & Nordin, S. (2022). Financial Factors Influencing Environmental, Social and Governance Ratings of Public Listed Companies in Bursa Malaysia. Cogent Business & Management, 9(1). https://doi.org/10.1080/23311975.2022.2118207 Ho, W. K., Ng, S. L., Mohd Sidik, V. N., Ng, F. S., & Suppiah, S. D. K. (2020). Corporate Characteristics and ESG Disclosures in Ma- laysian Public-listed Companies. Humanities and Social Sciences Letters, 8(1), 91–109. https://doi.org/10.18488/jour- nal.73.2020.81.91.109 Ismail, A. M., & Latiff, I. H. M. (2019). Board Diversity and Corporate Sustainability Practices: Evidence on Environmental, Social and Governance (ESG) Reporting. International Journal of Financial Research, 10(3), 31–50. https://doi.org/10.5430/IJFR.V10N3P31 Kamaludin, K., Ibrahim, I., Sundarasen, S., & Faizal, O. (2022). ESG in the Boardroom: Evidence from the Malaysian Market. Interna- tional Journal of Corporate Social Responsibility 2022 7:1, 7(1), 1–15. https://doi.org/10.1186/S40991-022-00072-2 Seow, R. Y. C. (2024a). Beyond Boardroom Diversity and Environmental, Social, and Governance Transparency: Evidence of the Emerging Market Firms. Business Performance Review, 2(2), 8–19. https://doi.org/10.22495/bprv2i2p1 Seow, R. Y. C. (2024b). Determinants of Corporate Social Responsibility (CSR) Disclosure: A Systematic Literature Review. Journal of Economics and Sustainability, 6(2), 37–67. https://doi.org/10.32890/jes2024.6.2.3 Seow, R. Y. C. (2024c). Determinants of Environmental, Social, and Governance Disclosure: A Systematic Literature Review. Busi- ness Strategy and the Environment, 33(3), 2314–2330. https://doi.org/10.1002/BSE.3604 Seow, R. Y. C. (2024d). Environmental, Social, and Governance Reporting in Family Firms: The Critical Role of CEO Attributes. Business Strategy and the Environment. https://doi.org/10.1002/bse.3984 Seow, R. Y. C. (2024e). Unveiling the Complexities of ESG and CSR Disclosures Determinants: A Systematic Literature Review. Journal of Technology Management and Business, 11(1), 49–79. https://doi.org/10.30880/jtmb.2024.11.01.004 Seow, R. Y. C., & Loo, E. C. (2023). The Influence of Chairman and CEO’s Capabilities and the Moderating Role of Family-controlled Companies on Environmental, Social, and Governance (ESG) Disclosure: A Study on the Malaysian Public-listed Compa- nies. International Journal of Professional Management, 18(3), 1–21. Wahyuningtyas, E. T., & Susesti, D. A. (2022). Gender Diversity Impact on ESG Performance: Evidence from Indonesian and Malay- sian Manufacturing Sector. International Conference on Global Innovation and Trends in Economics and Business, 105–111. https://doi.org/10.2991/978-94-6463-068-8_8 Wan Mohammad, W. M., Zaini, R., & Kassim, A. A. M. (2023). Women on Boards, Firms’ Competitive Advantage and Its Effect on ESG Disclosure in Malaysia. Social Responsibility Journal, 19(5), 930–948. https://doi.org/10.1108/SRJ-04-2021-0151 Wasiuzzaman, S., & Wan Mohammad, W. M. (2020). Board Gender Diversity and Transparency of Environmental, Social and Gov- ernance Disclosure: Evidence from Malaysia. Managerial and Decision Economics, 41(1), 145–156. https://doi.org/10.1002/ MDE.3099