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Impact of IFRS Sustainability Reporting Standard on Stakeholder perception on disclosure quality in Sweden
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.
2024 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

7AbstractThis study examined the views of stakeholders regarding the quality of sustainability disclosuresafter adopting the sustainable standards by the International Financial Reporting Standards (IFRS).The research is done through ten deep interviews with stakeholders such as investors, companyexecutives and academic professors, and the outcomes and challenges regarding environmentallyfriendly or sustainable reporting are examined. This approach incorporates qualitative datacompilation and thematic structure analysis to perceive deeply the unique outlooks of theparticipants and attain an extensive grasp of the present view of sustainability reporting.The findings show that a single approach such as IFRS encourages uniformity, comparison, andreliability of sustainability disclosures. While the participants many in the process recognized thata standardized reporting is indeed of great importance as it results in more transparency andstakeholder trust, they also clearly mentioned that on the other hand a standardized reporting didnot cover all aspects of sustainability and is of great difficulty to measure the metrics.Analysis is positioned within the context of Legitimacy Theory, Stakeholder Theory, SignalingTheory, and Agency Theory as the theoretical framework. The research illustrates the purpose ofsustainability reports as means for companies to seek legitimacy through meeting the society’sexpectations, addressing diversified stakeholder needs, signaling commitment to sustainability,and minimizing asymmetry in the information between management and stakeholders.Nevertheless, the study also illustrates considerable problems, for instance, data collectionobstacles, stakeholders’ skepticism, and the lack of measurement criteria.The study contributes to the knowledge base within the current debate through its focus ontheoretical concepts and practical implications for sustainability reporting practices. It putstransparency and accountability as key in the creation of trust among stakeholders and elucidatesthe long-term profitability of the use of standardized reporting platforms. The outcome of our workhas implications for corporations, auditors, and regulators that request companies to implementappropriate measures to further improve and timely engagement with stakeholders to increase theeffectiveness of sustainability reporting.Thus, this study shows the cruciality of designing a solid conceptual framework for sustainabilityaccounting and serves as a basis for future investigation of the development of sustainabilityreporting landscape.

Place, publisher, year, edition, pages
2024. , p. 96
National Category
Business Administration
Identifiers
URN: urn:nbn:se:umu:diva-232399OAI: oai:DiVA.org:umu-232399DiVA, id: diva2:1916894
Educational program
Master's Programme in Accounting
Supervisors
Available from: 2024-11-29 Created: 2024-11-28 Last updated: 2024-11-29Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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