By running two separate regression models, one for disclosure quality and one for disclosure quantity, she finds that disclosure quantity increased with political sensitivity, but disclosure quality decreased as firms became more politically sensitive. The findings recommend that managers mask their rent extraction activities, in this case, excessive remuneration, by providing high volume but low quality of corporate disclosures. Zakaria uses ROA as a proxy of bonus plan in her study. ROA as a proxy of bonus plan was also used by other researchers (e.g. Masodah, 2007; Rahman et al., 2005). Hence, according to PAT, firms that disclose their social and environmental activities tend to have greater rate of return. Thus it is hypothesized that: