Board attributes and companies’ choice of sustainability assurance providers

Alsahali, Kholod, Malagueño, Ricardo ORCID: https://orcid.org/0000-0002-1481-6487 and Marques, Ana ORCID: https://orcid.org/0000-0003-1595-0028 (2024) Board attributes and companies’ choice of sustainability assurance providers. Accounting and Business Research, 54 (4). pp. 392-422. ISSN 0001-4788

[thumbnail of Alsahali_etal_2023_AaBR]
Preview
PDF (Alsahali_etal_2023_AaBR) - Published Version
Available under License Creative Commons Attribution.

Download (1MB) | Preview

Abstract

We study whether and how the monitoring quality of the board of directors is associated with the choice of providers of assurance for sustainability disclosures. We also examine whether this relation depends on companies’ economic, legal, and social environment. In an international empirical study considering five categories of assurance providers, we find that key board attributes, including board size, frequency of board meetings, CEO separation, proportion of women on the board, and the existence of a sustainability committee affect the type of assurance provider chosen by companies. Overall, companies with higher board monitoring quality are more likely to appoint a Big 4 assurer for their sustainability disclosures. Companies with a sustainability committee are more likely to engage an engineering firm, while firms with more board meetings are more likely to appoint an expert assurer. Moreover, we find that companies based in countries with strong environments are more likely to engage an external assurance provider, particularly a Big 4 assurer or an engineering firm. Overall, our results indicate that international sustainability disclosure assurance choices depend on corporate governance practices, as well as countries’ economic, social, and legal environment.

Item Type: Article
Faculty \ School: Faculty of Social Sciences > Norwich Business School
UEA Research Groups: Faculty of Social Sciences > Research Groups > Accounting & Quantitative Methods
Depositing User: LivePure Connector
Date Deposited: 31 Jan 2023 16:30
Last Modified: 28 May 2024 14:31
URI: https://ueaeprints.uea.ac.uk/id/eprint/90901
DOI: 10.1080/00014788.2023.2181141

Downloads

Downloads per month over past year

Actions (login required)

View Item View Item