The irrelevance of R&D intensity in the ESG disclosure? Insights from top 10 listed companies on global Islamic indices

Figures & data

Table 1. Variable measurement

Research variable	Operational definition	Indicator	Scale	References
Dependent variable
ESG disclosure	GRI scoring index	$Score=\frac{n}{k}$	Ratio	Tarigan and Semuel (2015)
Independent variables
R&D intensity	Percentage of R&D costs over sales	(R&D costs/total sales) × 100%	Ratio	Yu et al. (2018)
Directors’ education	Educational background of directors in a firm	Median of score sequence of all directors’ education background based on a 5-point scale (0-school or lower; 1-diploma; 2-bachelor; 3-master; and 4-doctoral degrees)	Nominal	Tan et al. (2020)
Firm size	Size of a company	log(firm size)	Nominal	Yu et al. (2018)

Table 2. Descriptive statistics

	N	Minimum	Maximum	Mean	Standard deviation
R&D	99	.000	25.587	7.01884	7.395178
Edu	99	2.0	4.0	2.970	.5661
size	99	3.724	6.431	4.92062	.598837
ESG	99	.083	1.000	.80920	.246131
Valid N (listwise)	99

Table 3. Hypotheses Testing Result

Unstandardized coefficients			t	Sig.
Model	B
1 (Constant)		.517	2.453	.016
	R&D	.006	1.694	.094
	Edu	.156	3.630	.000
	size	−.042	−1.110	.270
	F test	7.875
	R square	0.199

Tarigan, J., & Semuel, H. (2015). Pengungkapan Sustainability Report dan Kinerja Keuangan. Jurnal Akuntansi dan Keuangan, 16(2), 88–101. https://doi.org/10.9744/jak.16.2.88-101

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Yu, E. P., Guo, C. Q., & Van Luu, B. (2018). Environmental, social and governance transparency and firm value. Business Strategy and the Environment, 27(7), 987–1004. https://doi.org/10.1002/bse.2047

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Tan, K. M., Kamarudin, F., Bany-Ariffin, A. N., & Abdul Rahim, N. (2020). Moderation of directors’ education on board business-firm efficiency. Management Decision, 58(7), 1397–1423. https://doi.org/10.1108/MD-09-2017-0905

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