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

Author

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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:)

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.

Suggested Citation

  • Zainab Aman, 2021. "The Moderating Effect of Board Independence on the Relationship between Family Ownership and Corporate Sustainability Reporting In Malaysia," GATR Journals afr196, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:afr196
    DOI: https://doi.org/10.35609/afr.2021.5.4(4)
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    References listed on IDEAS

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    1. Mohamed M. Shamil & Junaid M. Shaikh & Poh-Ling Ho & Anbalagan Krishnan, 2014. "The influence of board characteristics on sustainability reporting," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 22(2), pages 78-97, July.
    2. Cuadrado-Ballesteros, Beatriz & Rodríguez-Ariza, Lázaro & García-Sánchez, Isabel-María, 2015. "The role of independent directors at family firms in relation to corporate social responsibility disclosures," International Business Review, Elsevier, vol. 24(5), pages 890-901.
    3. Bertrand, Marianne & Johnson, Simon & Samphantharak, Krislert & Schoar, Antoinette, 2008. "Mixing family with business: A study of Thai business groups and the families behind them," Journal of Financial Economics, Elsevier, vol. 88(3), pages 466-498, June.
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    Cited by:

    1. Shaker Dahan AL-Duais & Ameen Qasem & Wan Nordin Wan-Hussin & Hasan Mohamad Bamahros & Murad Thomran & Abdulsalam Alquhaif, 2021. "CEO Characteristics, Family Ownership and Corporate Social Responsibility Reporting: The Case of Saudi Arabia," Sustainability, MDPI, vol. 13(21), pages 1-21, November.

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    More about this item

    Keywords

    Sustainability Reporting; Family Ownership; Corporate Governance; Independent Director;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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