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The role of family ownership in the relationship between board characteristics and corporate social environmental reporting : evidence from Malaysia

The objective of this paper is to investigate the role of family ownership in the relationship between board of directors (BOD) characteristics and the reporting of corporate social and environmental practices (CSER). BOD is one of the corporate governance mechanism put in place to ensure that the...

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Main Authors: Fathyah Hashim,, Zaini Embong,, Wang, Boon Phoey
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2021
Online Access:http://journalarticle.ukm.my/17929/1/51966-171563-2-PB.pdf
http://journalarticle.ukm.my/17929/
https://ejournal.ukm.my/ajac/issue/view/1432
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spelling my-ukm.journal.179292022-01-13T03:29:19Z http://journalarticle.ukm.my/17929/ The role of family ownership in the relationship between board characteristics and corporate social environmental reporting : evidence from Malaysia Fathyah Hashim, Zaini Embong, Wang, Boon Phoey The objective of this paper is to investigate the role of family ownership in the relationship between board of directors (BOD) characteristics and the reporting of corporate social and environmental practices (CSER). BOD is one of the corporate governance mechanism put in place to ensure that the company is managed to the best interest of shareholders. However, previous findings on the relationship between BOD characteristics and CSER are inconclusive. The effectiveness corporate governance mechanisms including BOD characteristics is claimed to be influenced by cultural and societal norms. Hence, this study adds to the understanding of the role of BOD in reporting practices of companies in Malaysia. In addition, given the mixed findings on the relationship of BOD and CSER, this study also investigates the role of family ownership. This paper suggests that the relationship between BOD and CSER is weaker in family-owned companies because the owner tends to safeguard the information, hence lower disclosure is evidenced. Malaysia is unique in the sense than around 70% of companies are owned by families and this provide a good setting for the study. Cross-sectional sample of 136 public listed companies are selected using systematic stratified random sampling methods. BOD characteristics to be investigated are female on Board (FB), board independence (BI), board size (BS) and CSR committee (CC). The CSER is assessed by content analysis, and PLS-SEM is used for data analysis. The results indicate that all of the BOD characteristics tested in this study except for board size, have significant positive relationship with CSER. However, the moderating role of family ownership is not supported. Penerbit Universiti Kebangsaan Malaysia 2021 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/17929/1/51966-171563-2-PB.pdf Fathyah Hashim, and Zaini Embong, and Wang, Boon Phoey (2021) The role of family ownership in the relationship between board characteristics and corporate social environmental reporting : evidence from Malaysia. Asian Journal of Accounting and Governance, 16 . pp. 37-51. ISSN 2180-3838 https://ejournal.ukm.my/ajac/issue/view/1432
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The objective of this paper is to investigate the role of family ownership in the relationship between board of directors (BOD) characteristics and the reporting of corporate social and environmental practices (CSER). BOD is one of the corporate governance mechanism put in place to ensure that the company is managed to the best interest of shareholders. However, previous findings on the relationship between BOD characteristics and CSER are inconclusive. The effectiveness corporate governance mechanisms including BOD characteristics is claimed to be influenced by cultural and societal norms. Hence, this study adds to the understanding of the role of BOD in reporting practices of companies in Malaysia. In addition, given the mixed findings on the relationship of BOD and CSER, this study also investigates the role of family ownership. This paper suggests that the relationship between BOD and CSER is weaker in family-owned companies because the owner tends to safeguard the information, hence lower disclosure is evidenced. Malaysia is unique in the sense than around 70% of companies are owned by families and this provide a good setting for the study. Cross-sectional sample of 136 public listed companies are selected using systematic stratified random sampling methods. BOD characteristics to be investigated are female on Board (FB), board independence (BI), board size (BS) and CSR committee (CC). The CSER is assessed by content analysis, and PLS-SEM is used for data analysis. The results indicate that all of the BOD characteristics tested in this study except for board size, have significant positive relationship with CSER. However, the moderating role of family ownership is not supported.
format Article
author Fathyah Hashim,
Zaini Embong,
Wang, Boon Phoey
spellingShingle Fathyah Hashim,
Zaini Embong,
Wang, Boon Phoey
The role of family ownership in the relationship between board characteristics and corporate social environmental reporting : evidence from Malaysia
author_facet Fathyah Hashim,
Zaini Embong,
Wang, Boon Phoey
author_sort Fathyah Hashim,
title The role of family ownership in the relationship between board characteristics and corporate social environmental reporting : evidence from Malaysia
title_short The role of family ownership in the relationship between board characteristics and corporate social environmental reporting : evidence from Malaysia
title_full The role of family ownership in the relationship between board characteristics and corporate social environmental reporting : evidence from Malaysia
title_fullStr The role of family ownership in the relationship between board characteristics and corporate social environmental reporting : evidence from Malaysia
title_full_unstemmed The role of family ownership in the relationship between board characteristics and corporate social environmental reporting : evidence from Malaysia
title_sort role of family ownership in the relationship between board characteristics and corporate social environmental reporting : evidence from malaysia
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2021
url http://journalarticle.ukm.my/17929/1/51966-171563-2-PB.pdf
http://journalarticle.ukm.my/17929/
https://ejournal.ukm.my/ajac/issue/view/1432
_version_ 1724074627427205120
score 13.211869

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