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Exploring determinants of the voluntary adoption of SASB standards by firms that adhered to GRI

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Resumo:This study aims to examine the influence that company- and country-specific characteristics have on the voluntary adoption of the Sustainability Accounting Standards Board (SASB) Standards in companies that already publish Integrated Reports (IR) in which Global Reporting Initiative (GRI) Standards are also applied. The sample is made up of an international sample of 8247 firm-year observations with companies preparing IR between 2019 and 2021, with the majority of them complying with GRI standards, and a considerable portion also in applying SASB standards. The findings suggest that the likelihood of preparing an IR that comply with both standards (SASB and GRI) is higher for larger organisations that are more lucrative, leveraged, and have higher ESG scores. Board characteristics such as board size, the number of independent directors, and the specific skills of those directors are identified to be major drivers of that likelihood. Furthermore, firms that have adhered to IR and apply GRI are more likely to voluntarily adopt SASB Standards if they are located in nations with a higher GDP (Gross Domestic Product) per capita. The results, on the other hand, reveal that the market-to-book ratio, gender diversity on the board, or the number of non-executive directors, are not determinants of the use of SASB when the same IR is GRI-compliant. This study contributes to practitioners, standard setters and researchers, providing an answer to the call for a combination of firm and institutional factors, assuming that IR relies on the connectivity of information of different nature.
Autores principais:Carvalho, António Ramirez Godinho de
Assunto:GRI SASB Voluntary adoption Determinants Firm-specific Country-specific Adoção voluntária Fatores determinantes Específicos da empresa Específicos do país
Ano:2023
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:ISCTE
Idioma:inglês
Origem:Repositório ISCTE
Descrição
Resumo:This study aims to examine the influence that company- and country-specific characteristics have on the voluntary adoption of the Sustainability Accounting Standards Board (SASB) Standards in companies that already publish Integrated Reports (IR) in which Global Reporting Initiative (GRI) Standards are also applied. The sample is made up of an international sample of 8247 firm-year observations with companies preparing IR between 2019 and 2021, with the majority of them complying with GRI standards, and a considerable portion also in applying SASB standards. The findings suggest that the likelihood of preparing an IR that comply with both standards (SASB and GRI) is higher for larger organisations that are more lucrative, leveraged, and have higher ESG scores. Board characteristics such as board size, the number of independent directors, and the specific skills of those directors are identified to be major drivers of that likelihood. Furthermore, firms that have adhered to IR and apply GRI are more likely to voluntarily adopt SASB Standards if they are located in nations with a higher GDP (Gross Domestic Product) per capita. The results, on the other hand, reveal that the market-to-book ratio, gender diversity on the board, or the number of non-executive directors, are not determinants of the use of SASB when the same IR is GRI-compliant. This study contributes to practitioners, standard setters and researchers, providing an answer to the call for a combination of firm and institutional factors, assuming that IR relies on the connectivity of information of different nature.