This chapter discusses the analysis of the consequences from the assorted analyses carried out to prove the developed hypotheses. The chapter begins with the presentation of the consequences from descriptive statistics, t-test analysis, univariate arrested development, hierarchal arrested development and multiple arrested development analysis. Then, the preliminary trials consequences are taken topographic point with the Kolmogorov-Smirnov ( or K-S ) trial to measure the normalcy of the distribution of the informations, the correlativity of the independent variables among each other to find the correlativity of the relationship, every bit good as the tolerance, and Variance Inflation Factor values to measure the multicolinearity job.
The presentation of the descriptive statistics is divided into three parts. The first portion discusses the analysis of the extent of the CSR disclosures including the descriptive statistics, t-test analysis and the tendency of the CSR revelations. The 2nd portion discusses the analysis of the descriptive statistics for other independent variables every bit good as for the control variables.
Table 2 provides the descriptive statistics for corporate societal duty revelations, independent variables and chairing variables. The CSR revelations were measured by the figure of words disclosed in the one-year studies. The mean for the CSR revelations in 2006, 2007 and 2008 were 256, 597 and 818 words severally. The consequences showed a drastic addition in the figure of words disclosed from 2006 to 2008 which proved that the execution of the Silver Book demand and Bursa Malaysia ‘s CSR model had encouraged public companies to prosecute in CSR activities in 2007 and 2008 and unwrap them in the one-year studies. REWORDS & gt ; This was consistent with the consequences of Darus et al. , ( 2009 ) who found that the CSR revelations increased after the Silver Book was introduced in 2006 and when such compulsory revelation demands became effectual in 2007 as one of the authorities ‘s attempts in advancing CSR revelations in Malaysia.
However, the extent of the CSR revelations in words runing from 0 to 4,313 words in 2007 after the execution of compulsory revelation by Bursa Malaysia and the debut of Silver Book and was lower than the word scope in 2006 which was 0 to 4,803 words. This is the grounds where some of the sample companies had disclosed minimal CSR information possible merely to run into the revelation demand ( Belal, 2001 ; Imam, 2000 ) . Hence, most likely the planetary economic crisis in 2007 could be one of the grounds which have disrupted the companies ‘ CSR activities as a consequence of the viing demands of the companies ‘ resources ( Udayasankar, 2008 ; Vaaland & A ; Heide, 2008 ; Haron et al. , 2004 ) .
This is consistent with the mated sample t-test analysis carried out to compare the mean of the CSR disclosures before the statutory revelation demand was imposed in 2007. Hypotheses 1 and 2 predict that the handiness of equal touchable and intangible assets will increase the extent of CRS revelations. The analysis was made for the 2006 and 2007 period which represented the period of pre-statutory revelation demand.
The consequences from table 3 show a dual addition in the mean of CSR revelations from 256.29 words in 2006 to 596.66 words in 2007 which reflected in the negative t-value. This was consistent with Darus et al. , ( 2009 ) who found a important addition in the CSR revelations after the regulative revelation demand was imposed in 2006. Besides, the consequences of the mated sample t-test showed a really important addition in the CSR disclosures among Malayan companies with a p value of 0.000.
However, Malaysia has recovered from the economic downswing in 2008 when the Malaysian public companies began to unwrap more CSR information in their one-year studies. A scope of 0 to 9,942 words of information for the CSR activities was found in this survey as presented in Table 2. It seems that the companies in Malaysia have realized the importance of CSR revelations in bettering their profitableness and fiscal public presentation ( Kang et al. , 2009 ; Canto & A ; Gonzalez, 1999 ) . This is besides likely due to the good repute possessed by the CSR revelations engaged by companies ( Toms, 2002 ) and the internal capablenesss which have been good managed by the respective companies which finally lead to a sustainable competitory advantage ( Taghian, 2008 ) .
Furthermore, the descriptive consequences were consistent with the 2nd mated sample t-test. This trial was undertaken to compare the mean of the CSR revelations after the infliction of the statutory revelation in 2007. Table 4 nowadayss a important addition in the mean of 2008 ‘s CSR disclosures to 818.13 words from 596.66 words in 2007 with a p-value of 0.000 which resulted in a negative t-value.
This implies that the planetary economic downswing which began in 2007 did non interrupt the CSR activities among the Malayan companies, both government-owned companies every bit good as family-owned companies. This was consistent with that of Haron et al. , ( 2004 ) who found that companies have received supports from the authorities during the economic crisis through budgets to guarantee the continuity of the state ‘s development and that the public public assistance was good maintained.
However, the authorities ‘s attempts by enforcing the regulative revelation demand can non be denied as the chief driver to promote public listed companies to take part in CSR activities and unwrap them in their one-year studies. This consequence supported hypotheses 1 and 2 that both touchable and intangible assets were related to the extent of the CSR revelations in the post-statutory revelation demand. The directors and proprietors of companies were cognizant of the importance of CSR towards their sustainability in the industry. Therefore, they participated in CSR activities to derive the competitory advantages
Tendency of CSR Disclosures
The addition in the extent of the CSR revelations was further evidenced clearly in Figure 2 below. It is really of import to see the tendency of the CSR revelations from 2006 to 2008 to measure the betterment in the extent of these revelations in the periods before the execution of the compulsory revelation demand in 2006, during the period of execution in 2007 and the impact of the revelation after the execution of the compulsory ordinance.
Zero means that companies in the sample companies did non unwrap any CSR information in their one-year studies. Minimal revelation represents the CSR revelation with a scope between one word to 100 words. Then, moderate revelation represents the CSR revelation with a scope between 101 words to 1000 words. Finally, the CSR revelation which exceeded 1001 words is considered extended revelation made by public listed companies.
Figure 2 shows that the CSR revelations have improved drastically from 2006 to 2008. In 2006, 56.6 per centum which represented 137 out of 242 sample companies made zero revelations. This implied that more than half of the sample companies did non lend to any CSR activities nor disclosed them in their one-year studies. This low CSR revelation in 2006 was due to the absence of the ordinance imposed by the authorities to promote companies in Malaysia to unwrap their CSR information ( Andrew et al. , 1989 ; Teoh & A ; Thong, 1984 ) and the low degree of consciousness among the corporate citizens about the impact of their activities towards the environment around them ( Amran & A ; Devi, 2008 ) .
An obvious betterment in the CSR revelation was shown in 2007 and 2008 when merely 28 ( 11.6 % ) and 8 ( 3.3 % ) companies did non unwrap CSR information in their 2007 ‘s and 2008 ‘s one-year studies severally. This was driven by the debut of Silver Book by authorities in 2006 which required Government-Linked Companies to unwrap CSR information ( Tam, 2007 ) . PASTIKAN. Amran & A ; Devi ( 2008 ) besides found the grounds that the authorities ‘s shareholding had influenced the companies to unwrap CSR information as compared to household owned companies.
In add-on, 25 companies out of 242 were found to hold disclosed less than 100 words in 2006. This proves that companies at that clip merely disclosed CSR information to alleviate their CSR revelations ‘ duties. As supported by Belal ( 2001 ) and Imam ( 2000 ) , most of companies ‘ CSR revelations were descriptive in nature. Furthermore, 62 companies were found to unwrap 100 words and above and another 18 companies had disclosed more than 1000 words of CSR revelations in their 2006 ‘s one-year studies.
Further betterment was revealed in 2007 and 2008 when 35 companies ( 14.5 % ) disclosed their CSR information in less than 100 words. 155.5 % increase was revealed from 2006, where 46 companies made CSR disclosures more than 1000 words in 2007. The extent of the CSR revelation
kept increasing in 2008 when 58 companies disclosed more than 1000 words which represented a 26.1 % increase from 2007. This consequence proved that the extent of the CSR revelations in Malaysia was bettering after the authorities ‘s intercession in advancing CSR activities in 2006 and those activities were non interrupted with the planetary economic crisis in 2007.Table 5 nowadayss the degree of the companies ‘ intangible resources which ranges from RM-5.29 million to RM7,059 million in 2006 ; RM zero to RM 8,958 million in 2007, and RM zero to RM8,394 million in 2008. This implies that the degree of intangible resources have improved from a lower limit of negative RM5.29 million in 2006 to a nothing sum in 2007 and 2008. Besides, the maximal sum of RM7,059 million in 2006 have besides increased in 2007 to RM8,958 million but reduced to RM8,394 million in 2008. It seems that the fiscal crisis which began in 2007 had affected the companies ‘ resources in 2008.
On the other manus, the touchable resources ranged from RM zero to RM102,108 million in 2006, RM66 million to RM67,725 million in 2007, and RM65 million to RM69,841 million in 2008. This indicated that the Malayan companies ‘ resources were at an equal degree to take part in CSR activities. The Malayan companies seemed likely to put more in touchable resources as compared to intangible resources. This contradicted with old surveies that provided groundss that the intangible resources could take companies to derive competitory advantages ( Galbreath, 2004 ; Fahy, 2002 ; Canto & A ; Gonzalez, 1999 ) .
In add-on, with respects to the ownership variables, the per centum of authorities ownership on the public listed companies ranged from 0 % to 66.07 % with an mean per centum of 6.19 % in 2006. The per centum of ownership reduced to 56.85 % with an norm of 5.31 % in 2007. This decrease was likely due to the planetary economic crisis which had forced the authorities to pass a batch in the budget for uninterrupted development intents ( Haron et al. , 2004 ) . As a consequence of those attempts, the authorities was able to increase 15 % of their bureau investing to 65.48 % with an norm of 6.30 % in 2008.
On the other manus, the household ownership companies ranged from 0 % to 75 % for 2006 and 2007 with the norm of 19.98 % and 20.06 % severally. Though, the per centum of ownership reduced somewhat in 2008 to 71.43 % with an norm of 19.22 % per company. This indicates that ownership construction in Malayan public listed companies are dominated by household proprietors. & lt ; THINK & gt ; The norm values besides indicated that both the authorities and household ownership were important in the sample companies. This was consistent with that of Arshad, Saidi & A ; Baharum ( 2010 ) who found that the sample companies had about the same per centum for both ownership constructions.
Besides, the per centum of the companies ‘ purchase to the entire assets ranged from a lower limit of 0 to a upper limit of 0.76 in 2006 and 2007 and from 0 to 0.79 in 2008 with a 0.22 mean degree in 2006 and 2008 and an norm of 0.21 in 2007. It appeared that the debt ratio degrees among the sampled companies in Malaysia were at a satisfactory degree with a maximal debt ratio of 0.79 which was less than one. An norm of the companies had a scope of 0.21 to 0.22 debt ratio which could be considered as low which indicated that the Malayan companies had an equal degree of entire assets to take part in the CSR activities.
Profitability ( ROA ) of the companies ranged from a lower limit of RM-501.02 million to a upper limit of RM 4,273.50 million in 2006. The scope of profitableness increased in 2007 from RM-587.61 million to a upper limit of RM6,038.80 million in 2007. However, the degree of profitableness of the sampled companies reduced in 2008 to a lower limit of RM-409.50 million and a upper limit of RM5,368.80 million. This survey besides revealed the mean profitableness of RM106 million in 2006, and RM157 million and RM141 million in 2007 and 2008 severally. The decrease in the mean net incomes might be due to the economic downswing which has affected the public presentation of Malayan companies.
Trial for Normality
In order to guarantee that the information of the variables were usually distributed, a Kolmogorov-Smirnov trial was carried out. The consequences of the trial showed that the chance value in the important column was more than 0.05, therefore stand foring normal distribution of the informations.
Based on Table 6, the informations used did non run into the normalcy premise of the multiple arrested development analysis utilizing the Kolmogorov-Smirnov trial ( or K-S Lilliefors ) . The important value of less than 0.05 indicated that the distribution of the independent variables was about non normal. As a consequence, the informations were transformed utilizing the new wave der Waerden attack to acquire a normal distribution informations. The transmutation procedure was done utilizing SPSS 16 by spliting the distribution into the figure of observation plus one part on the footing that each part had equal chance.
Multicollinearity is a job which occurs if one of the columns of the X matrix is precisely or about a additive combination of the other columns. It is stated that the greater the sum of multicollinearity, the greater the standard mistakes. Therefore, two trials have been carried out to place the presence of multicollinearity in this survey. They are the Bivariate Pearson Correlation and the Tolerance and Variance Inflation Factor ( VIF ) values.
The Pearson correlativity analysis has been conducted to measure the multicollinearity job among the independent variables. The bigger values of coefficient which is 0.8 and above indicate the two variables are extremely correlated to each other and redundantly explicate the dependant variables which cause the multicollinearity job. There are some redresss for the multicollinearity job ; one of the variables has to be dropped in order to acquire the important coefficient consequences ; more informations have to be obtained because more informations can bring forth more parametric quantity estimations with lower criterion mistakes.
Based on tabular array 7 which represents the independent variables for 2006, none of the independent variables were extremely related to each other. Therefore, no multicollinearity job was found in 2006 ‘s theoretical account. In add-on, table 8 and 9 besides show that the coefficient values of each independent variable were within a satisfactory scope and suggested no multicollinearity in 2007 ‘s and 2008 ‘s theoretical account. Therefore, none of the independent variables were rejected from this survey.
Tolerance and Variance Inflation Factor ( VIF ) Valuess
In add-on, Table 7 is prepared to analyze the presence of multicollinearity by placing the tolerance and the VIF among all the independent variables. The maximal VIF value presented in Table 7 is 5.804 for the interaction of authorities ownership on the intangible assets. Hair et Al. ( 1998 ) indicated that VIF values greater than 10 represent a multicollinearity job. No multicollinearity was found in this survey since the VIF values for all variables did non transcend 5.804.