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

JEL Classification: M14, M41.

URI: http://gatrenterprise.com/GATRJournals/AFR/vol5.4_4.html

DOI: https://doi.org/10.35609/afr.2021.5.4(4)

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