A snapshot of sustainability assurance market in New Zealand

Hsiao, Pei‐Chi Kelly; Scott, Tom; Zang, Zeting

doi:10.1108/par-08-2021-0142

Cited by 7 publications

(5 citation statements)

References 64 publications

(120 reference statements)

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“…Larger international companies often adopt not only external assurance because of great demand for transparent ESG information to offset agency costs but also international reporting guidelines such as the GRI guidelines. They include a section on stakeholder engagement to create a dialog with stakeholders via different channels, such as interviews, questionnaires or meetings (Hsiao et al , 2022). These findings are consistent with previous studies suggesting that size matters in CSR/ESG-related reporting and highlight that the extent of ECEs’ overseas development is a relevant factor as they actively grow in overseas markets (Hahn and Kühnen, 2013; Hörisch et al , 2015).…”

Section: Discussionmentioning

confidence: 99%

“…This study suggests that the nature of institutional ownership, size and degree of overseas development of firms can be driven by various external institutional forces and organizational internal dynamics (Parsa et al , 2021; Situ et al , 202; Yin, 2017). It notes the growing importance of the global corporate governance structure with the presence of INEDs and the participation of female directors for board diversity to mitigate agency costs and information asymmetry between companies and investors (Arayssi et al , 2020; Aboud and Yang, 2022; Hsiao et al , 2022).…”

Section: Discussionmentioning

confidence: 99%

See 1 more Smart Citation

Disparities in ESG reporting by emerging Chinese enterprises: evidence from a global financial center

Ng¹,

Leung

et al. 2023

SAMPJ

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Purpose This study aims to examine the potential disparities in environmental, social and governance (ESG) reporting among emerging Chinese enterprises (ECEs). ECEs are subject to a set of internationally oriented ESG requirements imposed by the regulator of a global financial center that is exposed to diverse stakeholders. The authors also consider ECEs’ underlying institutional ownership, which exhibits influence over governance as a salient component of ESG. Design/methodology/approach This study is based on a random sample of 500 ECEs listed on the Stock Exchange of Hong Kong (SEHK) – the global financial center of China. ESG reporting is measured by using the key performance indicators of the SEHK’s ESG Reporting Guide. The data are collected from annual reports that contain ESG disclosures or standalone ESG/sustainability reports published during the 2018–2019 fiscal year. The authors adopt binary logistic regressions and Chi-square tests to test the proposed hypotheses. Findings The authors find that ECEs’ heterogeneous institutional ownership and the extent of overseas development are associated with their disclosures on climate change. ECEs with international institutional ownership are found to be a significant factor for reporting aligned with the United Nations sustainable development goals (SDGs), using external assurance and stakeholder engagement, rather than state-owned enterprises (SOEs) and private companies. The authors also document that the presence of independent nonexecutive directors (INEDs) is significantly associated with reporting on meeting the SDGs and its use of external assurance, while the presence of female directors is a significant factor influencing disclosure emphasis on energy-saving initiatives. Practical implications The authors provide an empirical study of ECEs beyond the focus on SOEs that are expected to produce comprehensive ESG reporting in addressing a broader international community of stakeholders apart from the regime of their home country. The authors document the pertinence of ECEs’ institutional ownership and governance diversity to ESG reporting. In particular, international stakeholders need to recognize such underlying differences among ECEs rather than viewing them as a homogeneous group. Social implications The authors suggest that policymakers and practitioners in Asian countries consider increasing the presence of INEDs and gender diversity on ECE boards to enhance ESG reporting, which reinforces the findings of prior international studies suggesting such governance practices. Originality/value This study contributes to the existing body of knowledge about ESG reporting by documenting the underlying heterogeneity within ECEs, which are subject to a set of internationally oriented standards, as evidenced by their disparities in ESG reporting.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Disparities in ESG reporting by emerging Chinese enterprises: evidence from a global financial center

Ng¹,

Leung

et al. 2023

SAMPJ

View full text Add to dashboard Cite

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“…Recent studies provide evidence on country‐specific assurance markets. Based on a sample of 118 companies listed on the New Zealand Stock Exchange in 2020, Hsiao et al (2022) utilize hand‐collected data indicating whether companies provide sustainability information, whether sustainability information is assured, what subject matter is assured, the assurance level (i.e., reasonable or limited), assurance outcome (e.g., clean vs. qualified), type of assurance provider, disclosure of detailed procedures, assurance standard referenced (e.g., ISAE 3000, ISAE 3410), and the criteria assured against (e.g., GRI, ISO 14064, self‐declared). The results reveal that of the 118 sample companies, 62 voluntarily issued some form of EER, and 12 companies provided assurance.…”

Section: Determinantsmentioning

confidence: 99%

Research on extended external reporting assurance: An update on recent developments

Venter,

Krasodomska

2024

Financ Manag Account

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We review the recent literature on the assurance of Extended External Reporting published since the review published in 2021 in the Journal of International Financial Management & Accounting. Our review includes 50 articles published between 2020 and August 2023 across 30 journals ranked A*, A, or B on the Australian Business Deans Council 2022 Journal Quality List. We find that the literature continues to be dominated by positivist studies investigating the determinants and consequences of assurance. Studies on determinants examine carbon assurance, ownership, governance, and institutional themes. The consequences studies included in our review examine reporting‐related outcomes and investors' decisions. Other (qualitative) studies we reviewed examine issues such as assurance providers seeking meaning in their work and their attempts to promote assurance beyond merely a verification tool. We highlight several avenues for future research that could inform the work of standard setters and regulators.

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“…In comparison to academic research on sustainability reporting, studies examining NFI assurance “are relatively uncommon” (Hsiao et al , 2022a, p. 4459). The number of articles published reached its peak in 2019 with 24 publications in one year (Supplementary Material: Appendix 14).…”

Section: Ro4: Future Avenues For Researchmentioning

confidence: 99%

Non-financial information assurance: a review of the literature and directions for future research

Farooq,

Azantouti,

Zaman

2023

SAMPJ

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Purpose This study aims to review the literature on non-financial information (NFI) assurance including external assurance of sustainability reports (SRA) and integrated reports (IRA). The objectives are as follows: provide an overview of academic research; understand the nature of NFI assurance engagements by organising the literature around the five key elements of an assurance engagement; develop a framework for understanding NFI assurance; and provide directions for future research. Design/methodology/approach The study undertakes a structured literature review of 179 articles published from 1999 to 2023. Findings The review identified 324 researchers located in 35 different countries who published 179 articles on SRA and IRA. The researchers, their locations, journals, methods, theories and themes are examined. The literature is structured around the definition of an assurance engagement including a tripartite arrangement, subject matter, a suitable criterion, sufficient appropriate evidence and a written assurance report. A framework for understanding NFI assurance is offered. Avenues for future research, structured around the five elements of an assurance engagement, are presented. Practical implications Researchers will benefit from an overview of the literature and guidance on areas for future research. Lecturers can use the findings to develop content for their auditing courses. Reporting managers will benefit from a better understanding of this new form of assurance. Regulators can use this study’s insights to better inform the development of laws and corporate governance codes mandating NFI assurance. Standard setters can use these findings to guide the emergence of the new assurance standards. Assurance practitioners may use this research to inform practice. Social implications The findings may prove useful in addressing capture, which deters NFI assurance from enhancing disclosure credibility and fulfilling its transparency and accountability role. This is to the detriment of the wider society. Originality/value The consolidation of the literature around the five key elements of an assurance engagement is unique. The framework devised offers useful insights into the dynamics of assurance generally and NFI assurance more specifically. The study is timely given the new European Union regulations on NFI reporting and assurance and the work of the International Audit and Assurance Standards Board in developing a specialist NFI assurance standard.

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A snapshot of sustainability assurance market in New Zealand

Cited by 7 publications

References 64 publications

Disparities in ESG reporting by emerging Chinese enterprises: evidence from a global financial center

Disparities in ESG reporting by emerging Chinese enterprises: evidence from a global financial center

Research on extended external reporting assurance: An update on recent developments

Non-financial information assurance: a review of the literature and directions for future research

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