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The Impacts of Disclosing Internal Controls, Board Oversight and Assurance by Different Types of External Assurers on Investors' Use of Sustainability Information

Author

Listed:
  • Paul Sakchuenyos
  • Eka Nugraha Tan
  • Pei‐Jia Lum
  • Roger Simnett

Abstract

This study uses a 2 × 3 experiment with Australian investors to examine how disclosing internal controls and board oversight (ICBO) and engaging different types of external assurers affect perceived credibility of sustainability information. We find that both disclosing ICBO and engaging an accounting assurer enhance investors' perceived credibility and willingness to invest. However, the positive effect of ICBO disclosures does not differ between non‐accounting and accounting assurers. Further, investors value accounting assurers' expertise but express independence concerns when the assurer is from the financial statement auditor's firm. These findings provide insights for standard‐setters, regulators and practitioners in identifying appropriate credibility‐enhancing mechanisms.

Suggested Citation

  • Paul Sakchuenyos & Eka Nugraha Tan & Pei‐Jia Lum & Roger Simnett, 2026. "The Impacts of Disclosing Internal Controls, Board Oversight and Assurance by Different Types of External Assurers on Investors' Use of Sustainability Information," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 66(1), pages 887-903, March.
    • Handle: RePEc:bla:acctfi:v:66:y:2026:i:1:p:887-903
    DOI: 10.1111/acfi.70117
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    References listed on IDEAS

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