Audit quality, value relevance, integrated reporting and the moderating role of business ethics: evidence from European ESG firms

IF 3.6 Q1 BUSINESS, FINANCE Review of Accounting and Finance Pub Date : 2023-09-05 DOI:10.1108/raf-03-2023-0073
Abir Hichri
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Abstract

Purpose This study aims to investigate the relationship between audit quality and value relevance and subsequently ascertain the moderating effect of business ethics on integrated reporting (IR)–value relevance. Design/methodology/approach This study applied linear regressions with panel data using the Thomson Reuters ASSET4 database from European countries to analyse data of 510 companies belonging to the environmental, social and governance (ESG) index between 2010 and 2022. Findings A significant positive relationship was found between audit quality and value relevance. The results also suggest that IR has significant explanatory power on value relevance, and that business ethics moderate the relationship between IR and value relevance in European ESG firms. Practical implications Managers will see IR, business ethics and audit as a business strategy with incremental market value. In this regard, this study tried to provide insights and managerial solutions for managers of international companies to improve their strategy by drawing on the social, moral and business ethics approach. This finding will improve the informational relevance for investment opportunities, thus resulting in improved business performance. Originality/value To the best of the author’s knowledge, this is the first study to investigate the moderating role of business ethics in the relationship between IR and value relevance. This paper fulfils a recognised need to study the influence of audit quality on investor decisions. Furthermore, the contribution of this study could be observed in the fact that the market value analysis differs between the contractual and the business ethics approaches. Also, including a moderating variable in the explanation and determination of value relevance remains somewhat underexplored.
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审计质量、价值相关性、综合报告和商业道德的调节作用:来自欧洲ESG公司的证据
目的本研究旨在探讨审计质量与价值相关性的关系,进而确定商业道德对综合报告(IR)价值相关性的调节作用。设计/方法/方法本研究采用线性回归和面板数据,使用汤森路透来自欧洲国家的ASSET4数据库,分析2010年至2022年间属于环境、社会和治理(ESG)指数的510家公司的数据。发现审计质量与价值相关性之间存在显著的正相关关系。研究结果还表明,欧洲ESG公司的IR对价值相关性具有显著的解释力,而商业道德调节了IR与价值相关性之间的关系。实际意义管理者将把企业内部关系、商业道德和审计视为具有增量市场价值的商业战略。在这方面,本研究试图通过借鉴社会、道德和商业伦理的方法,为国际公司的管理者提供见解和管理解决方案,以改进他们的战略。这一发现将提高投资机会的信息相关性,从而提高业务绩效。原创性/价值据作者所知,这是第一个调查商业道德在IR和价值相关性之间关系中的调节作用的研究。本文满足了研究审计质量对投资者决策影响的公认需求。此外,本研究的贡献在于契约和商业伦理方法的市场价值分析存在差异。此外,在价值相关性的解释和确定中包括一个调节变量仍未得到充分探讨。
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来源期刊
CiteScore
4.30
自引率
0.00%
发文量
18
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