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Integrated thinking and sustainability reporting assurance: International evidence
Author(s) -
Baboukardos Diogenis,
Mangena Musa,
Ishola Abdullahi
Publication year - 2021
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.2695
Subject(s) - sustainability reporting , integrated reporting , sustainability , context (archaeology) , business , publication , accounting , quality (philosophy) , value (mathematics) , public relations , corporate social responsibility , marketing , political science , ecology , paleontology , philosophy , epistemology , machine learning , advertising , computer science , biology
Recently, there has been increasing demand by stakeholders for firms to demonstrate how they create value within the context of their operating environment. Consequently, a new reporting approach, integrated reporting (IR), was conceptualised with its development linked to the firm's integrated thinking (IT). Yet very little is known about the effects of IT on firms' reporting decisions. Hence, we investigate whether IT influences firms' decision to publish an assured sustainability report. Using an international dataset, we find that IT is positively associated with sustainability reporting assurance. We also find that this association is moderated by the type of legal system such that for firms in code law countries, the IT effects are reduced. Nevertheless, the effects of IT remain strong, indicating that IT is important for reporting decisions regardless of the firm's contextual setting. These findings have implications for policymakers and organisations interested in promoting high‐quality sustainability reporting.