Is tenure important in the sustainability assurance context? An empirical analysis of the informative value of assurance statements

[EN] Purpose This paper aims to examine the communicative value of assurance reports by investigating whether the impact on information asymmetries is contingent on the length of the contractual relationship between clients and assurance providers, which can compromise the provider’s independence. D...

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Detalles Bibliográficos
Autores: Ruiz Barbadillo, Emiliano, Martínez Ferrero, Jennifer
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2023
País:España
Institución:Universidad de Salamanca (USAL)
Repositorio:GREDOS. Repositorio Institucional de la Universidad de Salamanca
OAI Identifier:oai:gredos.usal.es:10366/161643
Acceso en línea:http://hdl.handle.net/10366/161643
Access Level:acceso embargado
Palabra clave:Sustainability assurance
Sustainability reporting
Tenure
Information asymmetries
5308 Economía General
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spelling Is tenure important in the sustainability assurance context? An empirical analysis of the informative value of assurance statementsRuiz Barbadillo, EmilianoMartínez Ferrero, JenniferSustainability assuranceSustainability reportingTenureInformation asymmetries5308 Economía General[EN] Purpose This paper aims to examine the communicative value of assurance reports by investigating whether the impact on information asymmetries is contingent on the length of the contractual relationship between clients and assurance providers, which can compromise the provider’s independence. Design/methodology/approach Using a firm-level data set of publicly listed international firms from 2007 to 2016, the authors estimate several regression models for panel data by using the generalized method of moments estimator to address the endogeneity issue. Findings Results find that the greater the communicative value in assurance statements, the lower the information asymmetries. However, this effect is constrained when the assurance provider’s independence is compromised due to an excessively long-term contractual relationship. In other words, assurance statements with more informative value enhance the firm’s transparency and increase users’ confidence in the sustainability information provided. However, the loss of independence linked to longer tenure jeopardizes the communicative value of the assurance report and contributes to reducing information asymmetries. Originality/value The study makes at least three clear contributions to current literature. First, the authors contribute to the limited existing research about the communicative value attributed to assurance statements by stakeholders. Second, the authors indirectly contribute to the literature that analyses whether stakeholders understand the assurance report, a complex statement in a growing market. Addressing the communicative value of assurance is certainly a difficult task, as it is a novel and complex activity. Third, the main contribution is providing initial empirical evidence about the moderating effect that assurance provider tenure has in the relationship between the informational content of the assurance report and the level of information asymmetries. To date, there is no empirical evidence regarding the moderating effect of long assuror’s tenure as an important feature of the assurance market, and beyond that, regarding its impact on the communicative value assigned by stakeholders to assurance statements.The authors are grateful to the Junta de Castilla y Le on and the European Regional Development Fund (Grant CLU-2019-03) for the financial support to the Research Unit of Excellence “Economic Management for Sustainability” (GECOS). The authors are grateful to the Ministerio de Ciencia e Innovaci on [Grant/Award No. GELESMAT - PID2021-122419OB-I00] for the financial support.Emeraldinfo202520252023info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://hdl.handle.net/10366/161643reponame:GREDOS. Repositorio Institucional de la Universidad de Salamancainstname:Universidad de Salamanca (USAL)InglésPID2021-122419OB-I00info:eu-repo/semantics/embargoedAccessoai:gredos.usal.es:10366/1616432026-06-07T06:28:51Z
dc.title.none.fl_str_mv Is tenure important in the sustainability assurance context? An empirical analysis of the informative value of assurance statements
title Is tenure important in the sustainability assurance context? An empirical analysis of the informative value of assurance statements
spellingShingle Is tenure important in the sustainability assurance context? An empirical analysis of the informative value of assurance statements
Ruiz Barbadillo, Emiliano
Sustainability assurance
Sustainability reporting
Tenure
Information asymmetries
5308 Economía General
title_short Is tenure important in the sustainability assurance context? An empirical analysis of the informative value of assurance statements
title_full Is tenure important in the sustainability assurance context? An empirical analysis of the informative value of assurance statements
title_fullStr Is tenure important in the sustainability assurance context? An empirical analysis of the informative value of assurance statements
title_full_unstemmed Is tenure important in the sustainability assurance context? An empirical analysis of the informative value of assurance statements
title_sort Is tenure important in the sustainability assurance context? An empirical analysis of the informative value of assurance statements
dc.creator.none.fl_str_mv Ruiz Barbadillo, Emiliano
Martínez Ferrero, Jennifer
author Ruiz Barbadillo, Emiliano
author_facet Ruiz Barbadillo, Emiliano
Martínez Ferrero, Jennifer
author_role author
author2 Martínez Ferrero, Jennifer
author2_role author
dc.subject.none.fl_str_mv Sustainability assurance
Sustainability reporting
Tenure
Information asymmetries
5308 Economía General
topic Sustainability assurance
Sustainability reporting
Tenure
Information asymmetries
5308 Economía General
description [EN] Purpose This paper aims to examine the communicative value of assurance reports by investigating whether the impact on information asymmetries is contingent on the length of the contractual relationship between clients and assurance providers, which can compromise the provider’s independence. Design/methodology/approach Using a firm-level data set of publicly listed international firms from 2007 to 2016, the authors estimate several regression models for panel data by using the generalized method of moments estimator to address the endogeneity issue. Findings Results find that the greater the communicative value in assurance statements, the lower the information asymmetries. However, this effect is constrained when the assurance provider’s independence is compromised due to an excessively long-term contractual relationship. In other words, assurance statements with more informative value enhance the firm’s transparency and increase users’ confidence in the sustainability information provided. However, the loss of independence linked to longer tenure jeopardizes the communicative value of the assurance report and contributes to reducing information asymmetries. Originality/value The study makes at least three clear contributions to current literature. First, the authors contribute to the limited existing research about the communicative value attributed to assurance statements by stakeholders. Second, the authors indirectly contribute to the literature that analyses whether stakeholders understand the assurance report, a complex statement in a growing market. Addressing the communicative value of assurance is certainly a difficult task, as it is a novel and complex activity. Third, the main contribution is providing initial empirical evidence about the moderating effect that assurance provider tenure has in the relationship between the informational content of the assurance report and the level of information asymmetries. To date, there is no empirical evidence regarding the moderating effect of long assuror’s tenure as an important feature of the assurance market, and beyond that, regarding its impact on the communicative value assigned by stakeholders to assurance statements.
publishDate 2023
dc.date.none.fl_str_mv 2023
2025
2025
info
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/10366/161643
url http://hdl.handle.net/10366/161643
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv PID2021-122419OB-I00
dc.rights.none.fl_str_mv info:eu-repo/semantics/embargoedAccess
eu_rights_str_mv embargoedAccess
dc.publisher.none.fl_str_mv Emerald
publisher.none.fl_str_mv Emerald
dc.source.none.fl_str_mv reponame:GREDOS. Repositorio Institucional de la Universidad de Salamanca
instname:Universidad de Salamanca (USAL)
instname_str Universidad de Salamanca (USAL)
reponame_str GREDOS. Repositorio Institucional de la Universidad de Salamanca
collection GREDOS. Repositorio Institucional de la Universidad de Salamanca
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