INCREASING COMPANY VALUE THROUGH THIRD-PARTY ASSURANCE ON SUSTAINABILITY DISCLOSURE AND THE ROLE OF ANALYSTS
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This study examines whether external assurance on sustainability disclosure influences company value, and the role of analysts in this relationship. In addition, and consistent with prior literature (Braam & Peeters, 2018), this study makes a distinction between different choices related to external assurance, i.e., the choices for the assurance provider, the scope and the level of assurance. The study hypothesizes a positive relationship between external assurance on sustainability disclosure influences company value. Furthermore and consistent with Luo et al. (2015), this study investigates the mediating role of analysts in the relationship between external assurance on sustainability disclosure and company value. Using an international sample of 1,468 observations during a four-year period (2014-2017), the results show a significant influence of external assurance on company value. However, the different choices related to external assurance show insignificant results and the mediating role of analyst recommendations on external assurance and company value appear to be minimal. Therefore, further research is recommended to examine the reasons for insignificant results regarding the choices related to external assurance and the minimal mediating role of analyst recommendations.
Faculteit der Managementwetenschappen