The symbolic use of ESG assurance and its implications for corporate accountability: a study of earnings management and tax avoidance

Abstract

This doctoral thesis examines the complex relationship between corporate ESG practices—particularly sustainability assurance (SA)—and core accounting behaviours within the increasingly integrated global ESG context. Comprising three interrelated studies, the research first employs a systematic literature review and bibliometric analysis to map the knowledge structure of ESG accounting research, followed by two empirical investigations based on data from European listed companies. The findings indicate that sustainability assurance is often utilised as a tool for symbolic legitimisation rather than substantive commitment, demonstrating significant associations with more concealed real earnings management and aggressive tax avoidance. The research underscores the critical moderating roles of national governance quality and Hofstede's cultural dimensions. By providing an explanatory framework that integrates multiple theoretical perspectives, including impression management, legitimacy, agency, and neo-institutional theory, the study contributes to academic discourse. It also offers practical insights for regulators and investors in identifying greenwashing and assessing genuine ESG commitment. Limitations, such as the exclusive focus on European markets, indicate avenues for future research to cultivate broader understanding.

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Identifiers

ORCID for Zeyu Yang: orcid.org/0000-0002-3097-723X

ORCID for Collins Ntim: orcid.org/0000-0002-1042-4056

ORCID for Alaa Zalata: orcid.org/0000-0003-2018-4313

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