Sustainability Reporting and Family Firms

We investigate the magnitude of sustainability reporting during a transition period from a voluntary reporting regime to a mandated ‘comply or explain’ regime. Our study focuses on investigating the impact of a firm’s designation as family or non-family firm on sustainability disclosure during the transition period. We also concentrate on examining the moderating influence of firm size and family firm type. Empirical tests are based on a sample of 436 Singapore publicly listed firms from April 1, 2014 to March 31, 2019 that yields 1,744 firm-year observations. Across the transition period average sustainability disclosure increased across all firm types (i.e., family and non-family). Results show family firms reported less sustainability information than non-family firms (included when government linked firms are excluded from non-family firms) during the transitory period. Multivariate tests indicate family firm designation is not a significant explanatory variable for the entire sample. However, the family firm designation is negative (positive) and significant among large and medium (small and micro) firms. Further tests show that the type of family firm (based on the power dimensions of ownership, management and governance) influenced the magnitude of sustainability disclosure, particularly among large and medium sized family firms. Finally, extended analysis found family firm designation influence the delay in issuing of standalone sustainability reports and integrated sustainability/annual reports once mandated ‘comply or explain’ requirements became effective from December 31, 2017.