Determinants of corporate philanthropy disclosure by leading Malaysian companies in the context of the resource-based view framework

Using the Resource-based View Theory (RBVT), this study examined 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 showed that corporate-elite networks had a significant association with the extent of corporate philanthropy disclosure in 2024. However, there was no significant relationship between the managerial ownership, profitability, and board independence level of corporate philanthropy. Additionally, the results indicated that firms with well-connected elite members were more likely to adopt a strategic approach to corporate philanthropy disclosure. The findings from this study can 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.