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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Examining the Relationship between Corporate Governance and Corporate Sustainability Disclosure in Jordan with the Moderating Role of Family Ownership/Control

Aseed Mansour Nazzal, Anees Janee Ali

http://dx.doi.org/10.6007/IJARAFMS/v14-i4/23392

Open access

This study aims to design a new framework explaining the relationship between corporate governance (CG) mechanisms and sustainability to discover the presence of a relationship between family-owned corporations and the factors that knit sustainability in these firms. This study addresses the investigation of sustainability disclosure (dependent variable) by inspecting the Corporate Governance (CG) elements (independent variables) in the presence of family ownership/control as a moderator in the prospect model; the data is retrieved from annual reports (published in years 2017-2019) belonging to non-financial companies listed in Amman Stock Exchange (ASE). CG elements include board size, board independence, women on board, and multi-family board membership (when two different members of the board belonging to two different untied families are anticipated other companies’ board membership), The significance of the study resides in its inspection of the current status of achieving sustainability disclosure for the non-financial Jordanian firms listed in the Amman Stock Exchange (ASE). Family ownership, low women representation on boards, and other corporate governance-related issues are tacked in stance with achieving sustainability disclosure among the Jordanian firms. This focus was carried out by defining two dummy variables: the multi-family board’s membership and the overlapping of committee membership. The data is analyzed using Smart-PLS after filling the theoretical gap on how family-owned firms have unique characteristics that undermine the presence and exposure of corporate sustainability.