Climate Risk Disclosure and Firm Performance: Evidence from Malaysian public listed companies

Nurshafieqa Illyana Chiang Abdullah Amin Chiang; Sharifah Faatihah Syed Mohd Fuzi; Julizaerma Mohamad Khudzari; Syahrina ‘Adliana Abdul Halim

doi:10.21834/e-bpj.v10iSI38.7638

Authors

Nurshafieqa Illyana Chiang Abdullah Amin Chiang Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia
Sharifah Faatihah Syed Mohd Fuzi Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA, Seremban, Negeri Sembilan, Malaysia
Julizaerma Mohamad Khudzari Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA, Seremban, Negeri Sembilan, Malaysia
Syahrina ‘Adliana Abdul Halim Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA, Seremban, Negeri Sembilan, Malaysia

DOI:

https://doi.org/10.21834/e-bpj.v10iSI38.7638

Keywords:

climate risk, disclosure policy, firm performance, risk management

Abstract

This study examines the association between climate risk disclosure and firm performance among publicly listed companies in Malaysia. Regulators and market participants are increasingly concerned about how companies address climate risk and the potential benefits of doing so. This study focuses on three key components of climate risk disclosure: governance, strategy and risk management, and their impact on firm performance. Based on 214 observations, we find that only climate risk management is positively associated with firm performance. These findings offer policy implications for climate action that companies should consider, particularly in emerging markets and voluntary disclosure environments like Malaysia.

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