Verification of manipulation: exploring the relationship between levels of sustainability and financial performance and firms'sustainability assurance choices

dc.contributor.advisorBraam, Geert
dc.contributor.authorCeven, David
dc.date.issued2024-07-02
dc.description.abstractCorporate sustainability is becoming more important due to increasing demands from stakeholders who are concerned about environmental, social, and governance issues. The problem arises that firms use tools to mask and perceive sustainability efforts to boost their financial performance, possibly misleading stakeholders instead of providing more transparency. This study explores how firms’ decisions to choose between limited and reasonable sustainability assurance (SA), either with full or limited scope, are associated with and differ based on various combinations of higher and lower corporate sustainability performance (CSP) and corporate financial performance (CFP). Utilizing data from 951 firm-year observations of 395 publicly traded firms in Europe (EU) and the United States (USA), the findings reveal that firms with a lower CSP and a higher CFP on both the short- and long-term are more likely to choose for limited SA with a limited scope when assured by a non-Big4. Further, the findings reveal that on the long-term, firms with higher CSP and higher CFP are more likely to choose for reasonable SA with a full scope when assured by a Big4. When not assured by a Big4, these firms are more likely to choose for reasonable SA with a limited scope. Finally, on the long-term, firms with higher CSP and lower CFP are more likely to choose for limited and reasonable SA with a full scope when assured by a non-Big4 firm. This study builds and extends on previous literature about SA and CSP showing how good and bad corporate performers use SA. Finally, this study creates new insights and research opportunities to build on this topic.
dc.identifier.urihttps://theses.ubn.ru.nl/handle/123456789/17360
dc.language.isoen
dc.thesis.facultyFaculteit der Managementwetenschappen
dc.thesis.specialisationspecialisations::Faculteit der Managementwetenschappen::Master Economics::Accounting & Control
dc.thesis.studyprogrammestudyprogrammes::Faculteit der Managementwetenschappen::Master Economics
dc.thesis.typeMaster
dc.titleVerification of manipulation: exploring the relationship between levels of sustainability and financial performance and firms'sustainability assurance choices
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