- Title
- Corporate choice of providers of voluntary carbon assurance
- Creator
- Datt, Rina; Luo, Le; Tang, Qingliang
- Relation
- International Journal of Auditing Vol. 24, Issue 1, p. 145-162
- Publisher Link
- http://dx.doi.org/10.1111/ijau.12184
- Publisher
- Wiley-Blackwell
- Resource Type
- journal article
- Date
- 2020
- Description
- This study investigates corporate incentives for the choice of assurance providers of accounting firms versus nonaccounting firms. Based on an international sample of 3,635 firm-year observations for the period of 2010-2014, we find that firms subject to greater legitimacy and stakeholder pressure (e.g., those with higher carbon emissions in countries with stringent climate protection and stakeholder-orientation) are more likely to choose accounting firms as their assurance provider. We also find supporting evidence that firms with a desire to improve carbon management mechanisms (e.g., firms that adopt carbon reduction incentives with higher carbon transparency) show a tendency to choose consulting firms specializing in climate change management. The overall findings suggest that the choice of assurance provider is a strategic decision, which aligns with a firm's overall corporate social responsibility goal. Our results should help practitioners, managers, and regulators understand the emerging audit practice and market.
- Subject
- accounting versus nonaccounting firm; assurance provider; climate change; competence; independence; SDG 12; SDG 13; Sustainable Development Goals
- Identifier
- http://hdl.handle.net/1959.13/1431104
- Identifier
- uon:38919
- Identifier
- ISSN:1090-6738
- Language
- eng
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Collections
Goal 13: Climate Change
Goal 12: Responsible Consumption and Production
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