Drivers of sustainability reporting quality: financial institution perspective
International Journal of Ethics and Systems
ISSN: 2514-9369
Article publication date: 19 September 2019
Issue publication date: 4 November 2019
Abstract
Purpose
This study aims to explain how institutional, cultural and corporate factors affect the sustainability reporting quality (SRQ) of financial institutions and to test the moderating effect of equator principles (EP).
Design/methodology/approach
The annual reports of 100 financial institutions were examined for the year 2016 using content analysis. The multiple regression technique was used to test the proposed relationships.
Findings
The results show that the quality of sustainability reports is higher among financial institutions in developed countries. Furthermore, institutions that practice Islamic values and those that integrate corporate social responsibility values into their mission and vision have higher levels of SRQ. Privately owned institutions also have higher quality of sustainability reporting in comparison to government-owned ones. Adopting the EP has a greater effect on the SRQ of non-Islamic financial institutions in comparison to Islamic ones.
Practical implications
The results of the study will be useful in enabling managers of financial institutions to become knowledgeable about the factors that lead to higher SRQ. The findings also have implications for policymakers’ development of sustainability reporting regulations and for the development of effective enforcement of regulations.
Originality/value
These outcomes contribute to the literature on SRQ exploring the importance of institutional, cultural and corporate factors on the extent of SRQ and testing the moderating effect of EP.
Keywords
Citation
Chang, W.F., Amran, A., Iranmanesh, M. and Foroughi, B. (2019), "Drivers of sustainability reporting quality: financial institution perspective", International Journal of Ethics and Systems, Vol. 35 No. 4, pp. 632-650. https://doi.org/10.1108/IJOES-01-2019-0006
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited