Quality of assurance on sustainability reports. A study on determinants of the quality of external sustainability assurance
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2016-07-06
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en
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Abstract
Stakeholders are increasingly holding companies accountable for their impact on society and the environment. In response, companies increasingly publish sustainability reports. Due to its voluntary nature, however, the quality of these reports is not guaranteed. External assurance should improve the credibility of these sustainability reports. However, the quality of external assurance on sustainability reports varies considerably. This thesis identifies determinants of the quality of assurance on sustainability reports in order to explain its variation. Using a sample of 192 international companies for the year 2014, the results suggest that companies in countries that are stakeholder-oriented and companies with poor environmental performance are positively associated with sustainability assurance quality.
These results suggest that higher quality sustainability assurance is used as a response to high stakeholder pressures these types of companies face due to sustainability concerns. The results also show support for the expectation that assurance providers from the nonauditing profession provide assurance on sustainability reports of higher quality than assurance providers from the auditing profession. Overall, the results suggest a need for a mandated sustainability disclosure and assurance regime.
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Faculteit der Managementwetenschappen