Determinants of Islamic Social Reporting Among Top Shariah-Approved Companies in Bursa Malaysia

Islamic social reporting is becoming a common practice among the top Shariah-approved companies in Malaysia. Shariah-approved companies are companies that conduct activities which are not contrary to the Islamic principles and have been approved by the Shariah Advisory Council. Using top Shariah-approved companies listed in the Bursa Malaysia as the sample study, this study aims to identify the factors that may influence a company to provide Islamic social reporting. Specifically, four company’s characteristics, namely, size, profitability, board composition and type of industry are chosen as factors in this study. The results show that three of the factors chosen: size, profitability and board composition significantly influence a company to provision of Islamic social reporting. Industry type, however, is not an important determinant to provision of Islamic social reporting. The findings in this study contribute to the body of knowledge a new dimension of corporate reporting.