The Moderating Effect of Board Independence on the Relationship between Family Ownership and Corporate Sustainability Reporting In Malaysia

Zainab Aman ()
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Zainab Aman: Department of Accounting and Finance Kolej Universiti Islam Antarabangsa Selangor 43000 Kajang Selangor Malaysia Author-2-Name: Norman Saleh Author-2-Workplace-Name: Faculty of Economic and Management Universiti Kebangsaan Malaysia 43600 Bangi Selangor Malaysia Author-3-Name: Zaleha Abdul Shukur Author-3-Workplace-Name: Faculty of Economic and Management Universiti Kebangsaan Malaysia 43600 Bangi Selangor Malaysia Author-4-Name: Romlah Jaafar Author-4-Workplace-Name: Faculty of Economic and Management Universiti Kebangsaan Malaysia 43600 Bangi Selangor Malaysia Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:

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Abstract: Objective - The objective of this paper is to investigate the relationship between family ownership and corporate sustainability reporting to determine how the role of board independence affects the relationship between those variables within Malaysian listed companies. Methodology/Technique - The annual reports of 771 listed companies from 2014 to 2016 were analyzed using content analysis methods. The study uses agency theory to develop the hypotheses. Findings - The study found that family ownership is negatively related to corporate sustainability reporting. The finding shows that independent directors are unable to influence the relationship between family ownership and corporate sustainability reporting. The findings of this study are expected to provide insight to authorities in relation to the factors that could enhance corporate sustainability reporting primarily in family-owned companies. Novelty - Previous studies have only focused on environmental and social dimensions of corporate sustainability, whilst this study addresses all the 3 dimensions of sustainability (economic, environmental, and social). This paper is one of the first attempts to investigate the roles of board independence on the relationship between family ownership and corporate sustainability reporting in Malaysia. Type of Paper - Empirical.

Keywords: Sustainability Reporting; Family Ownership; Corporate Governance; Independent Director (search for similar items in EconPapers)
JEL-codes: M14 M41 (search for similar items in EconPapers)
Pages: 13
Date: 2021-03-31
New Economics Papers: this item is included in nep-acc, nep-cfn, nep-env, nep-isf and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Accounting and Finance Review, Volume 5, Issue 4

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Persistent link: https://EconPapers.repec.org/RePEc:gtr:gatrjs:afr196

DOI: 10.35609/afr.2021.5.4(4)

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