Do assurance and assurance providers enhance Covid-related disclosures in CSR reports? An examination in the UK context
Research output: Contribution to journal › Article › peer-review
Design/methodology/approach: Our sample consists of FTSE All-share non-financial listed companies. We employ a computer-aided textual analysis and we use a bag of words to capture COVID-related information in the CSR section of the firm's annual reports.
Findings: The results suggest that the existence of independent external assurance is significantly and positively associated with the provision of COVID-19 information in CSR reports. We also find that when assurance is provided by Big 4 accountancy firm, the disclosure of COVID-related information is enhanced. Furthermore, large companies are more likely to disclose COVID-related information in their CSR reports that are externally assured from top tier accountancy firms suggesting that assurance could be a burden for smaller firms. Overall, the findings suggest that assurance on CSR reports provides an ‘insurance-like’ protection that mitigates the risks and signals the management’s ethical
behaviour during the pandemic.
Practical implications: Our approach helps to assess the level of corporate engagement with COVID-19 practices and the extent of related disclosures in CSR reports based on the Covid19 Secure Guidelines published by the UK government. This helps to emphasise how companies engage and communicate Covid-19 related information to stakeholders through CSR reports and ensure a safe working environment during this pandemic. Managers will
need to assess the costs and benefits of purchasing assurance on CSR disclosures giving the ethical signal that assurance sends to the market and protection that it covers during the crisis.
Originality/value: This paper provides a shred of unique evidence of the impact of the existence of external assurance and the type of assurer on the disclosure of COVID-related information in CSR reports. To the best of our knowledge, no study has yet investigated the corporate disclosure on an unforeseen event in CSR reports and the role of CSR assurance in this respect.
|Journal||International Journal of Accounting & Information Management|
|Early online date||19 May 2021|
|Publication status||Early online - 19 May 2021|
- IJAIM_acceptedversion (3)
Rights statement: Albitar, K., Al-Shaer, H. and Elmarzouky, M. (2021), "Do assurance and assurance providers enhance COVID-related disclosures in CSR reports? An examination in the UK context", International Journal of Accounting & Information Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJAIM-01-2021-0020. Copyright © 2021, Emerald Publishing Limited. All rights reserved.
Accepted author manuscript (Post-print), 712 KB, PDF document