Determinants of environmental disclosures: green initiatives by listed companies in Malaysia

In an era of heightened emphasis on sustainability and transparency, it is essential to understand the factors that drive effective environmental disclosure to advance Environmental, Social, and Governance (ESG) practices. This study aimed to identify the determinants of environmental disclosure and assess the impact of Firm Size, Leverage, Liquidity, Profitability, and Stakeholder Engagement score on environmental disclosure, both collectively and individually, within the context of ESG green initiatives among corporate companies listed on Bursa Malaysia for the period 2020 to 2024. The data analysis, involving 357 companies, was conducted using panel regression analysis, and the analysis was performed with EViews 13. The findings show that while firm size, profitability, and stakeholder engagement significantly impact environmental disclosure individually, leverage and liquidity do not. Collectively, all variables influence disclosure. These results highlight the importance of specific firm characteristics and stakeholder engagement in enhancing corporate transparency and sustainability reporting, offering actionable insights for policymakers, corporate leaders, and investors to strengthen ESG practices.