The role of sustainability assurance in corporate sustainability reporting: Exploring the association between assurance choices and corporate sustainability and financial performance
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2025-07-10
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en
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This thesis examines the association between combinations of sustainability assurance choices and both corporate sustainability performance (CSP) and corporate financial performance (CFP). Transparent and credible sustainability reporting is essential for corporate accountability, but concerns remain about the credibility and reliability of such disclosures. Voluntary assurance has emerged as a tool to enhance credibility and reliability, yet its effectiveness is questioned due to weak standards and potential managerial influence. Some firms may adopt symbolic assurance practices, such as limited assurance on selected sections, to manage stakeholder perceptions and improve CPF without improving actual CSP. This study examines whether different combinations of assurance level, scope, and provider are associated with CSP and CFP. Using multilevel mixed-effects linear panel data regression analyses on 2,108 firm-year observations from 509 listed companies across 37 countries (2019–2023), this study finds no consistent associations between combinations of high-quality assurance and either CSP or CFP. A notable exception is a negative relationship between limited assurance with full scope and short-term CFP, possibly due to higher assurance costs. In contrast, a positive association between Big Four assurance providers and long-term CFP suggests that provider reputation may enhance long-term CFP.
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Faculteit der Managementwetenschappen