Proceedings of the 11th International Conference on Business, Accounting, Finance and Economics (BAFE 2023)

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The Determinants of Climate Risk Disclosure in Malaysian Banking Sector: A Conceptual Framework

Authors
Cheah Chee Keong1, *, Wong Kok Yaw2, Nakesvari A/P Shanmugam3, Tan Kock Lim4, Ong Hock Siong5, Kong Yin Mei6, Devagi Erusan7, Adam Arif Lee Aik Keang8
1Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Petaling Jaya, Malaysia
2Faculty of Accountancy, Finance & Business, Tunku Abdul Rahman University of Management and Technology, Kuala Lumpur, Malaysia
3Faculty of Accountancy, Finance & Business, Tunku Abdul Rahman University of Management and Technology, Kuala Lumpur, Malaysia
4School of Business, UOW Malaysia KDU Penang University College, George Town, Malaysia
5Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Petaling Jaya, Malaysia
6Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Petaling Jaya, Malaysia
7Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Petaling Jaya, Malaysia
8Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Petaling Jaya, Malaysia
*Corresponding author. Email: cckeong@utar.edu.my
Corresponding Author
Cheah Chee Keong
Available Online 31 December 2023.
DOI
10.2991/978-94-6463-342-9_24How to use a DOI?
Keywords
Climate risk disclosure; Malaysia Bank; Bank governance; Machine learning; Text Mining
Abstract

Climate change poses substantial physical and transitional risks to Malaysian banks through impacts on their customers and loan portfolios. Despite BNM guidance encouraging climate risk management and disclosure, reporting remains limited. This study develops a conceptual framework grounded in stakeholder theory to examine determinants of voluntary climate risk disclosure using mixed methods. The framework proposes bank governance and bank specific characteristic shape transparency through pressures from stakeholders demanding fuller reporting. Specifically, board oversight, gender diversity, bank capital, profitability and size are hypothesized to influence disclosure. Machine learning text analysis will quantify reporting disclosure before panel regressions test relationships with hypothesized determinants. This localized study addresses a gap on climate risk disclosure practices in Malaysia’s emerging economy context. Findings can guide policy and industry initiatives aimed at improving transparency and resilience of the banking sector to climate change. Enhanced disclosure better equips stakeholders to assess bank exposures and risk management strategies.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 11th International Conference on Business, Accounting, Finance and Economics (BAFE 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
31 December 2023
ISBN
10.2991/978-94-6463-342-9_24
ISSN
2352-5428
DOI
10.2991/978-94-6463-342-9_24How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Cheah Chee Keong
AU  - Wong Kok Yaw
AU  - Nakesvari A/P Shanmugam
AU  - Tan Kock Lim
AU  - Ong Hock Siong
AU  - Kong Yin Mei
AU  - Devagi Erusan
AU  - Adam Arif Lee Aik Keang
PY  - 2023
DA  - 2023/12/31
TI  - The Determinants of Climate Risk Disclosure in Malaysian Banking Sector: A Conceptual Framework
BT  - Proceedings of the 11th International Conference on Business, Accounting, Finance and Economics (BAFE 2023)
PB  - Atlantis Press
SP  - 322
EP  - 334
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-342-9_24
DO  - 10.2991/978-94-6463-342-9_24
ID  - Keong2023
ER  -