Owing to weak awareness of sustainability concept and insufficient research in developing countries like Malaysia, as well as recent incidents from corporate dilemma, this study aims to analyse and propose a more appropriate conceptual model to depict the workable relationship between variables. This paper contributes to the literature by designing a conceptual model for Malaysia’ environment, social and governance (ESG) disclosure on listed firm financial performance by proposing return on asset (ROA) and return on investment (ROI) as financial profitability objectives. This study also identifies four different contracts as moderating variables to inspire more transparent disclosure pertinent to ESG. To provide an insight into the proposed ESG model, the article also discusses multiple theories and further emphasized the implementation of ESG has actually further satisfied the various expectation from different parties involved as concern with legitimated motive as ultimate guardian. ESG disclosure has also encouraged more transparency, pertinent and timely disclosure to mitigate information gap.
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