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Exploring the quality of corporate environmental reporting: Surveying preparers’ and users’ perceptions

Akrum Helfaya (Department of Accounting, Keele Management School, Keele University, Keele, UK) (Department of Accounting, Damanhour University, Damanhour, Egypt)
Mark Whittington (Department of Accounting and Finance, Business School, University of Aberdeen, Aberdeen, UK)
Chandana Alawattage (Department of Accounting and Finance, Business School, University of Aberdeen, Aberdeen, UK)

Accounting, Auditing & Accountability Journal

ISSN: 0951-3574

Article publication date: 19 December 2018

Issue publication date: 15 January 2019

2839

Abstract

Purpose

The purpose of this paper is to provide a multidimensional model for assessing the quality of corporate environmental reporting (CER) incorporating both preparer- and user-based views.

Design/methodology/approach

As opposed to frequently used researcher-chosen proxies, the authors used an online questionnaire asking preparers and users how they assess the quality of a company’s environmental report.

Findings

The analysis of the responses of 177 users and 86 preparers shows that quantity was not perceived as the most significant element in determining quality. Besides quantity, the respondents also perceived information types, measures used, themes disclosed, adopting reporting guidelines, inclusion of assurance statement and the use of visual tools as significant dimensions/features of reporting quality.

Research limitations/implications

The online questionnaire has some limitations, especially in terms of researcher being absent to clarify meanings and, hence, possibilities that respondents may misinterpret the questionnaire elements.

Practical implications

Considering that robust, reliable measurement of reporting quality is difficult, preparers, standard setters and policy makers need multidimensional quality models that incorporate both users’ perceptions of quality and preparers’ pragmatic understanding of the quality delivery process. These will make the preparers informed of whether their disclosure may be falling short of users’ expectations.

Originality/value

Amid, increasing complexity of CER, the research contributes to the growing body of literature on assessing the quality of CER by developing a less subjective, multidimensional, preparer–user-based quality model. This innovative quality model goes beyond the traditional quality models, subjective author-based quality measures. Focussing on the three dimensions of reporting quality – content, credibility and communication – it also offers a high-level resolution of meaning of CER quality.

Keywords

Acknowledgements

The authors would like to thank the editor (Professor Lee Parker) and the anonymous reviewers of the journal for their constructive comments and valuable suggestions on earlier versions of the paper. The first author also acknowledges the financial support of Damanhour University, Egypt.

Citation

Helfaya, A., Whittington, M. and Alawattage, C. (2019), "Exploring the quality of corporate environmental reporting: Surveying preparers’ and users’ perceptions", Accounting, Auditing & Accountability Journal, Vol. 32 No. 1, pp. 163-193. https://doi.org/10.1108/AAAJ-04-2015-2023

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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