sustainability
Article
Firm and Board Characteristics, and E-Waste Disclosure:
A Study in the Era of Digitalisation
Hafizah Abd-Mutalib * , Che Zuriana Muhammad Jamil, Rapiah Mohamed, Nor Atikah Shafai
and Saidatul Nurul Hidayah Jannatun Naim Nor-Ahmad
Citation: Abd-Mutalib, H.;
Muhammad Jamil, C.Z.; Mohamed,
R.; Shafai, N.A.; Nor-Ahmad,
S.N.H.J.N. Firm and Board
Characteristics, and E-Waste
Disclosure: A Study in the Era of
Digitalisation. Sustainability 2021, 13,
10417. https://doi.org/10.3390/
su131810417
Academic Editor:
Manuela Tvaronaviciene
Received: 31 August 2021
Accepted: 15 September 2021
Published: 18 September 2021
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4.0/).
Tunku Puteri Intan Safinaz School of Accountancy, College of Business, Universiti Utara Malaysia,
Sintok 06010, Kedah, Malaysia; zuriana@uum.edu.my (C.Z.M.J.); rapiah@uum.edu.my (R.M.);
noratikah@uum.edu.my (N.A.S.); saidatul@uum.edu.my (S.N.H.J.N.N.-A.)
* Correspondence: amhafizah@uum.edu.my
Abstract: Business sectors face the advent of digitalisation, bringing attention to e-waste, or waste
generated from obsolete electrical and electronic appliances. In addressing this issue, the study
intends to examine e-waste disclosure by Bursa Malaysia listed firms. Specifically, this study investi-
gates the extent and quality of e-waste disclosure, observes whether the reporting differs between
industries and the boards on which the firms are listed, and investigates if e-waste disclosure is associ-
ated with firm and board characteristics. A total of 92 firms in the telecommunication and technology
industries, listed on the Main and Ace boards of Bursa Malaysia, were selected as samples. The
results reveal that despite an indication that e-waste reporting applies to the two sectors, only 16% of
the firms report their commitment to managing e-waste. The disclosure shows how e-waste reporting
is low in quantity and is circulated with only very general, qualitative information. An independent
sample t-test reveals that firms listed on the Main board report significantly more e-waste information
than their counterparts. Another t-test indicates an insignificant difference in e-waste disclosure
between the firms under study. Furthermore, firm size significantly impacts e-waste disclosure, while
firm performance, board size, and board gender diversity show insignificant impact. The results
of this preliminary study shed some light on business firms’ commitment towards their e-waste
management and reporting, which is a substantial factor for Malaysia to achieve environmental
sustainability.
Keywords: e-waste; disclosure; digitalisation; annual reports; Malaysia
1. Introduction
Digitalisation has brought many benefits to business organisations [1]. By leveraging
digital technology, firms may enjoy efficiency in business transactions [2,3], may be enabled
to develop more products and enter new markets at lower costs [4], may enjoy increased
competitive advantage [5], and, in the long-run, greater profitability [6]. Despite these
benefits, digitalisation has also been found to negatively affect the environment [7]. Among
the environmental issues that receive much attention in the digitalisation era is the waste
from electrical and electronic appliances (e-waste) [8].
In the digitalisation age, where information may be retrieved with the point of a finger,
the use of electrical and electronic appliances has increased exponentially [9]. These appli-
ances contain components that are usually filled with toxic materials and heavy metals such
as mercury, lead, and brominated flame retardants that are considered hazardous under
the Basel Convention. When these appliances reach the end of their useful life (referred to
as e-waste), the toxic components that are not properly disposed of will eventually end up
in landfills. Toxic and hazardous chemicals will be generated through open burning, or by
permeating the soil, thus endangering human health and the environment. Improperly
managed e-waste results in soil, atmospheric and aquatic contamination [8,10], which poses
a threat to humans, animals and plants [10]. Within humans, exposure to e-waste leads
Sustainability 2021, 13, 10417. https://doi.org/10.3390/su131810417 https://www.mdpi.com/journal/sustainability