Multilevel Approach to Sustainability Report Assurance Decisions

Souto, Belén Fernández-Feijóo; Romero, Silvia; Ruiz, Silvia

doi:10.1111/auar.12104

Cited by 61 publications

(103 citation statements)

References 43 publications

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“…However, the reasons for differences across countries are more complex [1], and could be explained by institutional theory [45]. Thus, in line with Reverte [3], Hahn and Kühnen 2013 [44], Fernández-Feijóo et al 2015 [45], we used these three different theories to explain differences in sustainability assurance practices in the financial services sector.…”

Section: Theoretical Approachmentioning

confidence: 98%

“…Systems-oriented theories offer a powerful lens [22] as it allows the introduction of broader societal influences in analysing the way that companies operate, and the information that they reveal [43]. The most widely used systems-oriented theories are institutional, legitimacy, and stakeholder theories [44,45].…”

Section: Theoretical Approachmentioning

confidence: 99%

“…It is presumed that a large numbers of stakeholders directly increase the need for companies to explain their business behaviour [44]. Accordingly, it is expected that stakeholder pressure influences the decision to adopt assurance [45,49] and the selection of assurance provider [45], since firms operating in different sectors should focus on certain stakeholders more than they should focus on others [59] and respond to sector-specific stakeholder pressure [60].…”

Section: Theoretical Approachmentioning

confidence: 99%

“…According to [1] and Fernández-Feijóo et al 2015 [45], the legitimacy theory can be used to explain differences related to company characteristics. However, the reasons for differences across countries are more complex [1], and could be explained by institutional theory [45].…”

Section: Theoretical Approachmentioning

confidence: 99%

“…Cho et al [65] evidenced that those from the financial sector or 'environmentally-sensitive sectors' were more likely to seek external assurance. Fernández-Feijoó-Souto et al [45] showed that the probability of adopting assurance was higher for companies belonging to sectors with greater visibility, such as financial services. Sierra et al [5] revealed that companies from 'sensitive sectors' (such as oil and energy, or financial services) were more likely to adopt assurance.…”

Section: Sustainability Assurancementioning

confidence: 99%

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Sustainability Assurance in Socially-Sensitive Sectors: A Worldwide Analysis of the Financial Services Industry

2018

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Sustainability reporting and assurance have considerably increased in the last decades. Among different sectors, 'sensitive sectors' attracted the attention of many academics. However, most of research works were focused only on 'environmentally-sensitive sectors'. Therefore, after the loss of trust caused by the lack of transparency due to the crisis, 'socially-sensitive sectors' as financial services sector needs to strengthen users' confidence in the credibility of their reported activities. The aim of this paper is to assess assurance practices worldwide in one of the main 'socially-sensitive sectors': the financial services sector. We study what factors are associated with adoption of assurance and choice of assurance provider, and whether assurance statements differ across providers. Our results reveal that, compared to the global context, companies operating in the financial services sector are more likely to adopt assurance and to choose accountants as assurance providers. Our findings show that adoption of assurance depends on company size. We also found that companies using the financial services sector supplement are more prone to adopt assurance. Our results also evidence that choice of assurance provider depends on the country and listing status Finally, our research shows a great variability in assurance statements across providers.

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Section: Theoretical Approachmentioning

confidence: 98%

Section: Theoretical Approachmentioning

confidence: 99%

Section: Theoretical Approachmentioning

confidence: 99%

Section: Theoretical Approachmentioning

confidence: 99%

Section: Sustainability Assurancementioning

confidence: 99%

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Sustainability Assurance in Socially-Sensitive Sectors: A Worldwide Analysis of the Financial Services Industry

2018

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Corporate Sustainability Performance and Assurance on Sustainability Reports: Diffusion of Accounting Practices in the Realm of Sustainable Development

Braam

Peeters

2017

Corp Soc Responsibility Env

137

111

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In response to investors and other stakeholders questioning the credibility of the performance information displayed in sustainability reports, companies increasingly have their sustainability reports voluntarily assured by an independent third party. However, voluntary third-party assurance on sustainability reports (SA) may vary considerably in terms of the choice of the assurance provider as well as the scope and level of assurance. In this study, the relationship between corporate sustainability performance (CSP) and choices related to SA is explored.Using a panel data set of 4686 listed companies (from 21 European and North American countries) during the period 2009-2014, the results indicate that companies with a superior CSP are more likely to employ third parties to provide assurance on their sustainability reports than companies with an inferior sustainability performance. For companies that employ third parties to provide assurance, we also find that, among the companies headquartered in the more shareholder-oriented countries, CSP plays a significant role in explaining variation in the choice of the assurance provider, while predominantly in the more stakeholder-oriented countries, companies with a good CSP are more likely to choose a broader assurance scope than companies with a poor CSP. The results support the notion that companies with a superior CSP make different choices related to SA than companies with an inferior CSP. The results also indicate that country-specific characteristics are important for understanding the variation in choices related to SA. We discuss the findings and their implications.

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Cultural rule orientation, legal institutions, and the credibility of corporate social responsibility reports

Steindl

2020

Corp Soc Responsibility Env

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Culture matters for credible corporate social responsibility (CSR) reporting. I show that firms located in countries with stronger cultural rule orientation are more likely to (a) receive assurance on their CSR report, (b) receive assurance from an accounting firm, (c) receive assurance in accordance with an assurance standard, and (d) receive assurance on their entire CSR report. Path analysis reveals that the direct effect of cultural rule orientation is much stronger than its indirect effect via legal institutions. I confirm the dominance of the direct effect in a qualitative comparative analysis. The economic significance of the direct effect is identified using probit regression analysis. Endogeneity concerns are addressed in a battery of robustness checks. Overall, the findings of this study provide a nuanced understanding of how culture affects credible CSR reporting, which, in turn, has important implications for managers, stakeholders, and policy makers.

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Multilevel Approach to Sustainability Report Assurance Decisions

Cited by 61 publications

References 43 publications

Sustainability Assurance in Socially-Sensitive Sectors: A Worldwide Analysis of the Financial Services Industry

Sustainability Assurance in Socially-Sensitive Sectors: A Worldwide Analysis of the Financial Services Industry

Corporate Sustainability Performance and Assurance on Sustainability Reports: Diffusion of Accounting Practices in the Realm of Sustainable Development

Cultural rule orientation, legal institutions, and the credibility of corporate social responsibility reports

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