Environmental, Social And Governance Research Articles

Exploring the impact of digital knowledge, integration and performance on sustainable accounting, reporting and assurance

Purpose The purpose of this study is to perform bibliometric analysis to systematically and comprehensively examine the current landscape of digital knowledge, integration and performance in the transformation of sustainability accounting, reporting and assurance. Design/methodology/approach This research uses a systematic literature review, following the Scientific Procedures and Rationales for Systematic Literature Review protocol and uses various bibliometric and performance analytical methods. These include annual scientific production analysis, journal analysis, keyword cooccurrence analysis, keyword clustering, knowledge gap analysis and future research direction identification to evaluate the existing literature thoroughly. Findings The analysis reveals significant insights into the transformative impact of digital technologies on sustainability practices. Annual scientific production and journal analyses highlight key contributors to the adoption of digital technologies in sustainability accounting, reporting and assurance. Keyword cooccurrence analyses have identified key themes in sustainability accounting, reporting and assurance, highlighting the transformative role of digital technologies such as artificial intelligence (AI), blockchain, Internet of Things (IoT) and big data. These technologies enhance corporate accountability, transparency and sustainability by automating processes and improving data accuracy. The integration of these technologies supports environmental, social and governance (ESG) reporting, circular economy initiatives and strategic decision-making, fostering economic, social and environmental sustainability. Cluster-by-coupling analyses delve into nine broader revealing that IoT improves ESG report accuracy, eXtensible Business Reporting Language structures ESG data and AI enhances life cycle assessments and reporting authenticity. In addition, digital transformation impacts environmental performance, big data optimizes resource use and edge computing improves eco-efficiency. Furthermore, this study identifies avenues for future research to advance the understanding and implementation of digital technology in sustainability accounting, reporting and assurance practices. Research limitations/implications Academically, this research enriches the understanding of how digital technologies shape sustainability practices and identifies gaps in digital knowledge and integration. Practically, it provides actionable insights for organizations to improve sustainability reporting and performance by effectively leveraging these technologies. Policy-wise, the findings advocate for frameworks supporting the effective implementation of these technologies, ensuring alignment with global sustainability goals. Originality/value This study offers a detailed analysis of the performance and intellectual framework of research on implementing digital technology in sustainability accounting, reporting and assurance. It highlights the evolving research landscape and emphasizes the need for further investigation into how emerging technologies can be leveraged to achieve sustainability goals.

Real Earnings Management and ESG Performance in China: The Mediating Role of Corporate Innovations

ABSTRACTThis study addresses whether the positive consequences of corporate innovation can mitigate the negative repercussions of earning management practices on corporate sustainability. Specifically, it investigates the impact of real earning management (REM) practices on corporate environmental, social and governance (ESG) performance. Likewise, it explores the mediating role of corporate innovation inputs and outputs in this relationship. The study uses a sample of the A‐share listed firms in the Chinese stock market from 2011 to 2021. We measure REM activities as a comprehensive index of corporate abnormal cash flows, abnormal production costs and abnormal discretionary expenses. The Chinese firms' ESG performance is based on Huazheng's ESG rating. Corporate innovation is categorised into innovation input (i.e., R&D expenditure) and innovation output (i.e., patent applications). The study finds that REM practices inversely affect corporate ESG performance and its various pillars. Likewise, firms that engage in higher REM practices are less likely to allocate resources to innovation (i.e., lower R&D expenditure) and have a low innovation output (i.e., fewer patent applications). Nevertheless, firms with higher innovation input and/or higher innovation output exhibit higher ESG performance. Finally, the corporate innovation input and output mediate the relationship between REM practices and ESG performance, suggesting that the positive influence of innovation on ESG performance helps to mitigate the negative consequences of earnings management practices. These results underscore the significance of ethical financial practices and innovation‐driven strategies in enhancing corporate ESG performance.

The Impact of Mandatory ESG Disclosure on Share Price

Abstract: The importance of sustainable development has attracted public attention. To achieve the global sustainable development goals, copious countries have recently begun formulating and implementing mandatory ESG (Environment, Social and Governance) disclosure policies. This has prompted the research community to investigate the impact of compulsory disclosure on the interests of corporate stakeholders, such as share price. According to stakeholder theory, long-term value-based theory, resource-based theory, and efficient market hypothesis, ESG mandatory disclosure will have short-term and long-term impacts on stock prices. Specifically, from the short-term perspective, good ESG reports will lead to rapid growth. Then the price will return to normal level. Moreover, in the long term, this has no significant impact on share prices. This article will use event research methods and linear regression models to specifically study the impact of Apple's ESG report disclosure on stock prices. Finally, research has found that in a normal environment, mandatory ESG disclosure will have a positive short-term impact on share price according to the good quality of ESG reports, while this will have a negative influence on stock price due to the poor quality of ESG reports. However, in special circumstances such as the 2022-2022 global epidemic period and long-term perspective, the disclosure of ESG reports has no significant impact on stock prices.

Corporate Governance, ESG, Audit Committee and Financial Performance in European Investment Holding Companies

The purpose of this research paper is to explore the connection between Corporate Governance, Environmental, Social and Governance (ESG), Audit Committee (AC) and Financial Performance in European Investment Holding Companies. This paper aims to understand whether there is a correlation between these elements. The study answers the following research question: "What is the impact of corporate governance indicators, ESG and financial performance on investments in public holding companies in Europe?" Our findings reveal significant correlations between corporate governance structures and financial performance metrics, as well as the influence of ESG ratings on financial performance and corporate governance. Additionally, we identify the effects of audit committee characteristics on financial performance and ESG outcomes. The reported data is collected from a sample of companies included in the Refinitiv Eikon Database and analysed using a panel data analysis at both regional and industry level. The sample is composed of 228 European Companies, covering a period of 4 years, from 2019-2022. I chose this because it includes the impact of the pandemic and the post-pandemic recovery period, providing insight into the adaptability and resilience of companies in the face of major economic challenges.This research contributes to a deeper understanding of the dynamics between corporate governance, ESG practices and financial performance, providing valuable insights for investors, managers and regulators aiming to navigate sustainable investment strategies in the European market. This sample is considered large enough to provide meaningful data and draw relevant conclusions. Companies from various European countries were included to reflect the diversity of the market and to analyse variations in governance and ESG practices in different national contexts. The focus on public holding companies provides a specific perspective on how these entities manage corporate governance and ESG, given their importance in the European economy. The selection of the sample was based on the availability of financial and corporate governance data to ensure the reliability and validity of the analysis. This data will be used to investigate how governance and ESG practices influence companies' financial performance, thus providing important insights for understanding the relationship between these aspects within the European market.

The Importance of Governance and Audit Committee in ESG Reporting Within the Aerospace Industry

In the context of the global situation, against the backdrop of a rather marked instability and perhaps inappropriate behavior of mankind in recent times, as well as climate instability, the study aims to analyze the relationship between the presence of corporate governance, the existence and expertise of the AC as well as reporting on environmental, social and governance (ESG) indicators within the aerospace industry globally, taking into account long-term environmental objectives at global level, such as net carbon emissions to tend towards zero by 2050. The data analyzed were extracted from the Refinitiv Eikon database using, globally, from which a sample of 368 public companies in the aerospace industry was extracted, analyzed over a period of 4 years, respectively 2019-2022. As a methodology used in the research, a linear regression model was used, analyzing the linear relationship between the existing corporate governance dependent variable and the independent variables: the existence of the AC, the AC's expertise and the ESG score. This research contributes to the literature on the reporting of indicators (ESG) by aerospace companies, in which regulators do not play a dominant role in determining the degree of disclosure. Probably, in the future it will be necessary for most companies to realize that transparency in reporting contributes to a balance in the world and humanity would benefit if the polluters would reduce their intensity. In conclusion, corporate governance and the AC can play a key role in the effectiveness of ESG indicators reporting in the aerospace industry, which would lead to sustainable practices and contribute to the industry's efforts to address global environmental challenges.

Double Materiality Approach and Sustainable Business Model Paradigm: A Three-Fold Analysis

Adopting the United Nations 2030 Agenda for Sustainable Development, governments commit to the 17 goals and 169 associated targets in areas of critical importance for humanity and planet, while companies manifest a growing interest in playing a significant role to SDGs prioritisation. Researchers, policymakers, stakeholders, and analysts are all preoccupied about responsible ways of redesigning the business model to mitigate the growing concerns, such as companies’ failures, global multidimensional crisis, and sustainability-related issues. Under the light of institutional theory, legitimacy theory, stakeholder theory, the aim of this research is to investigate how environmental, social and governance (ESG) policies and practices included in a sustainable business model may respond to the double materiality approach in order to contribute to a balance among divergent interests of managers, investors, and other stakeholders. The financial materiality is conceptualized using ESG data, that mainly targets investor’s needs. Stakeholder materiality, is concerned with external impact of companies, embodied in societal-level outcomes measured as the number of SDGs addressed in corporate reporting. In this study, company-year data are collected from Refinitiv Eikon database, starting with 2015, until current reporting period and analysed using frequency, univariate and correlation analyses. Based on Levene homogeneity, the ANOVA parametric t-test results are validated by Mann-Whitney Wilcoxon and Krushkal Wallis non-parametric tests. Three main research questions are responded. First, the findings examine and discuss the evolution of sustainability reporting measured with ESG scores, decomposed by the three pillars and ten categories, along with the SDGs prioritisation. Second, statistically significant differences in ESG and SDGs variables reported by various groups clustered on industry-related corporate characteristics are discussed. Third, the significant associations between ESG measures and SDGs are analysed from the double materiality perspective. The study contributes to the academic and practical understanding of the evolving business model under normative dimension of institutional theory, incorporating the decision to engage in current sustainability frameworks and policies.

Multiple large shareholders and ESG performance: Evidence from the cost‐sharing and resource‐provision view

AbstractThis paper investigates how multiple large shareholders (MLS) influence firms' environmental, social and governance (ESG) performance. Based on Chinese data, we find that firms with MLS perform better on ESG compared to firms with a single blockholder. This impact is stronger in firms with a more balanced ownership structure and in the pandemic period, which supports the cost‐sharing of other large shareholders in motivating ESG activities. Such impact is also intensified in firms with different types of large shareholders and with foreign shareholders, aligning the resource provision mechanism. This study reveals a novel role of other large shareholders in driving ESG.

Who cares about environmental, social and governance performance? Family versus non-family firms

Purpose This paper aims to explore the nexus between family involvement and environmental, social and governance (ESG) performance based on socioemotional wealth theory, and it also analyzes the potential influence mechanism. Design/methodology/approach Based on the categorization of China Stock Market & Accounting Research database, this study divides the Chinese listed firms into family and nonfamily firms and applies multiple regression methods to test the theoretical hypotheses. Findings Family involvement can incentivize corporations to enhance corporate transparency, which can in turn enhance their ESG performance. The role of family involvement in bolstering corporate ESG performance is negatively contingent on external financing constraints. Originality/value There are insufficient studies on the nexus between family ownership and ESG performance. The findings provide insights into helping policymakers formulate targeted measures to encourage corporations to be more active in promoting ESG initiatives.

Enhancing Corporate Sustainability: ESG Reporting and Employee Competence Development

The increasing importance of ESG (Environmental, Social, and Governance) factors in corporate management has highlighted the need for specific employee competences. While previous studies have focused on external reporting, and the indication what elements should be reported (with no hints how to collect this information), this research shifts the focus to internal uses of ESG information, such as goal setting, performance evaluation, and management. The paper explores the key competences required by employees to successfully implement these internal processes. The authors present the research results on competences needed in individual enterprises (n=53) in Poland, in which ESG reporting is already required or will be required soon. By examining the competence sets necessary for navigating the complexities of ESG reporting, this study contributes to bridging the gap between theoretical knowledge and practical application in corporate sustainability endeavours. Through an investigation involving representatives from various sectors, including but not limited to, environmental advocacy, corporate governance, and social responsibility, this research identifies key competences relevant for ESG reporting and sustainability integration. By elucidating the intersection between employee competences and corporate sustainability objectives, this article offers valuable insights for organisational leaders, HR professionals, and policymakers aiming to foster a culture of sustainability within enterprises.

Tracing the path to sustainable governance: CSR committees as mediators of board impact on ESG performance in the MENA region

Purpose This study aims to explore the mediating role of corporate social responsibility (CSR) committees in the relationship between board characteristics and environmental, social and governance (ESG) performance, specifically within the Middle East and North Africa (MENA) region. Design/methodology/approach Based on a panel of 178 firms spanning 2015–2022, the analysis uses Baron and Kenny’s (1986) mediation approach, supplemented by structural equation modeling (SEM) path analysis for robustness. Findings The findings demonstrate that CSR committees play a significant mediating role in the impact of board size, expertise and gender diversity on ESG performance. Furthermore, the study confirms the direct, positive influence of both board characteristics and the presence of CSR committees on ESG performance, underscoring their strategic importance in fostering sustainability in this regional context. Practical implications The findings highlight the strategic importance of diversifying and enhancing board skills to improve ESG performance. Companies are encouraged to recalibrate their governance frameworks to leverage the mediating influence of CSR committees and promote sustainable business practices. Social implications By demonstrating the positive effect of CSR committees on ESG performance, this study aligns with global trends in responsible business conduct and highlights the importance of corporate governance in addressing environmental and social challenges. This alignment is critical for achieving sustainable development goals and reinforcing stakeholder trust in the region. Originality/value This research provides novel empirical insights into the mediating effect of CSR committees within the MENA region, offering a unique contribution to the discourse on corporate governance and sustainability. By highlighting region-specific governance dynamics that shape ESG outcomes, it deepens the understanding of effective governance practices.

Sustainability tweeting triumphs during the COP events: analysing environmental, social and governance (ESG) communication on twitter

Sustainability tweeting triumphs during the COP events: analysing environmental, social and governance (ESG) communication on twitter

Analysis of Moderation and Co-Moderation Effects on Waste Information Disclosure and Financial Performance Connection: A Way to Ensure Sustainable Business for SMEs

ABSTRACT Financial and Environmental, Social and Governance (ESG) performance of sustainable businesses from environmentally sensitive industries and their impact on society has traditionally focused on large companies but has increased in importance for SMEs. To investigate and follow the strengthening of the relationship between waste information disclosure and financial performance, this paper examines the moderation and co-moderation effects of productivity, environmentally sensitive status industry, and board size on firms in Romania. Results revealed that increased board size and a higher degree of waste information disclosure are associated with decreased profitability ratios. When economic productivity grows, a higher degree of waste information disclosure enhances the financial performance of companies.

Do SMEs have an ESG communication strategy? Exploring the quality and influencing factors of voluntary ESG disclosures using web‐based and annual report channels

AbstractThis paper evaluates the influencing factors and disparities between web‐based and annual report channels for environmental, social and governance (ESG) disclosures by small and medium‐sized enterprises (SMEs). In contrast to the prevalent use of case‐studies in the context of SMEs, a quantitative study was conducted by performing a content analysis of the websites and annual reports of 100 manufacturing SMEs in Italy. Based on the collected evidence, SMEs exhibited a higher level of web‐based disclosures compared to annual reports. These disclosure channels appear to be independent of each other, with financial resources significantly influencing the quality of annual reports (i.e. profitability as a proxy) and size impacting information available on websites (i.e. turnover as a proxy). Both channels may be explained by the resource‐based view, while agency characteristics (such as having a Big Four external auditor or board size) have a relevant effect on the overall voluntary ESG disclosure score.

Board gender diversity and ESG performance: pathways to financial success in Malaysian emerging market

PurposeThis study examines the relationship between board gender diversity (BGD) and financial performance (FP) in the Malaysian emerging market, focusing on the mediating role of Environmental, Social and Governance (ESG) performance.Design/methodology/approachUsing a dataset of 976 observations from Malaysian publicly listed companies from 2016 to 2023, this study explores BGD as the independent variable with FP measured through both accounting and market metrics. ESG performance serves as a mediating variable. The analysis employs Structural Equation Modelling (SEM) to examine direct and mediating effects, supplemented by the Baron and Kenny approach and Two-Stage Least Squares (2SLS) regression for robustness.FindingsThe findings indicate that higher BGD positively and significantly impacts all three performance measures: Tobin's Q (TQ), Return on Assets (ROA) and Return on Equity (ROE). ESG performance positively influences these measures. The SEM analysis reveals a significant positive impact of BGD on ESG performance, which fully mediates the relationship between BGD and TQ/ROA and partially mediates the relationship between BGD and ROE.Practical implicationsThe results have significant implications for policymakers, board members, scholars and investors, stressing the importance of gender diversity and ESG performance in improving FP. The findings suggest that enhancing board effectiveness through BGD can promote sustainable practices and align corporate strategies with broader sustainability goals, which eventually helps to improve companies’ FP.Originality/valueThis research contributes to the literature by highlighting the mediating role of ESG performance in the relationship between BGD and FP and emphasizing the importance of gender diversity in corporate sustainability. It addresses this gap by providing insights into how ESG performance enhances the impact of BGD on FP.

Government Subsidies and Business Resilience of Chinese Electric Vehicle Enterprises: The Roles of ESG and Technological Capability

In the context of increasing global macroeconomic policy uncertainty, the effectiveness of Chinese government subsidies in promoting the business resilience of electric vehicle (EV) enterprises and the sustainable development of the EV industry has attracted significant attention. This paper utilizes panel data from Chinese listed EV companies from 2013 to 2022 to examine the impact of government subsidies on the business resilience of these enterprises. It also analyzes the moderating roles of corporate ESG (Environmental, Social, and Governance) performance and technological capability. This study finds that government subsidies significantly enhance business resilience, particularly for companies with a high ESG performance and a strong technological capability, which can better leverage these subsidies to further enhance their resilience amidst market fluctuations and uncertainties. Moreover, as an external support measure, government subsidies complement internal corporate factors like ESG performance and technological capability, promoting the sustainable development of the industry. Policymakers should consider corporate ESG performance and technological capability when designing subsidy programs to maximize their effectiveness.

Examining the implementation of UN sustainable development goals in Brazilian universities

Purpose This study aims to examine how Brazilian universities have implemented the sustainable development goals (SDGs) in institutional practices, curriculum and teaching, management and community outreach programs. Design/methodology/approach This study is based on content analysis of the data sets of Brazilian higher education courses and their link to SDGs. A literature review has also been developed to integrate the knowledge of sustainability practices in Brazilian universities. Dashboards will be used to present the related findings. Findings Brazilian universities’ practices have concentrated their efforts on SDGs, which include responsible consumption and production, sustainable cities and communities and quality education. The literature emphasizes energy efficiency, reflecting its prominence as a subject of study among universities. Originality/value This research highlights the innovative use of data analysis techniques to present the findings. It also provides examples of environmental, social and governance (ESG) practices, frameworks and tools that can help sustainability management in this sector.

Impact of sports brands’ activities: Are consumers willing to pay a price premium?

PurposeThe environmental, social and governance (ESG) movement has become a global phenomenon, penetrating even the sports branding industry. Accordingly, this study investigated whether ESG activities can lead to positive attitudes among customers and thereby affect their behavioral intentions.Design/methodology/approachWe collected data by administering questionnaires to 154 consumers, after which we conducted partial least squares structural equation modeling to test the hypothesized relationships.FindingsThe results indicated that ESG activities favorably influenced brand image and brand loyalty. Brand loyalty was positively associated with the willingness to pay (WTP) for a price premium. The indirect effect of brand loyalty was confirmed in the association between ESG activities and WTP a price premium. ESG activities indirectly affected WTP a price premium via serial mediation through brand image and brand loyalty.Originality/valueThis research extends our understanding of the mechanism behind consumers’ decision-making processes on the basis of ESG activities and their impact on WTP a price premium.

ESG disclosure and financial performance in debt market: evidence from the oil and gas industry

PurposeThis study aims to analyze the relationship between environmental, social and governance (ESG) ratings and corporate bond credit spreads within the oil and gas (O&G) industry. Given the sector’s significant environmental impact and the current energy transition, it is crucial to understand how ESG disclosure affects financial performance, particularly in terms of debt market dynamics. This research aims to provide empirical evidence on whether ESG efforts by O&G companies influence their cost of borrowing.Design/methodology/approachThis study employs a quantitative approach using secondary data from Refinitiv for the period 2018–2022. To address potential endogeneity issues, we utilize two-stage-least-squares regressions. The analysis focuses on corporate bond spreads as the dependent variable and ESG as the key independent variable.FindingsOur findings indicate a negative association between ESG disclosure and corporate bond spreads. Specifically, companies with higher ESG ratings tend to experience lower credit spreads, suggesting that improved ESG practices may lead to reduced borrowing costs. Additionally, the results show that non-state-owned companies (SOC) benefit more from ESG in terms of financial performance compared to state-owned counterparts.Research limitations/implicationsThe study is limited by its reliance on secondary data from Refinitiv, which may not capture all nuances of ESG practices and financial performance. Additionally, the analysis is confined to the O&G industry, potentially limiting the generalizability of the findings to other sectors. Future research could expand the scope to include other industries and incorporate primary data to provide a more comprehensive understanding of the ESG–financial performance relationship.Practical implicationsThe study’s findings suggest that O&G companies can potentially reduce their borrowing costs by improving their ESG ratings. This insight is valuable for corporate managers and investors, as it highlights the financial benefits of sustainable practices. Additionally, policymakers could use these findings to encourage better ESG disclosure and practices within the industry, ultimately promoting a more sustainable energy sector.Social implicationsBy demonstrating the financial advantages of ESG disclosure, this study underscores the broader social benefits of sustainable business practices. Improved ESG ratings not only contribute to environmental and social well-being but also enhance a company’s financial performance. This dual benefit can motivate more companies to adopt sustainable practices, leading to positive societal impacts such as reduced environmental damage and improved community relations.Originality/valueThis study contributes to the existing literature by providing empirical evidence on the relationship between ESG ratings and corporate bond credit spreads specifically within the O&G industry. By highlighting the differential impact of ESG disclosure on state-owned versus non-SOC, the research offers unique insights that can inform corporate strategies in the context of sustainability and financial performance.

Corporate governance characteristics and involvement in ESG activities: current trends and research directions

PurposeThis study aims to conduct a comprehensive literature review to examine the relationship between corporate governance characteristics and firms’ engagement in environmental, social and governance (ESG) activities. The review focuses specifically on academic papers published in ranked accounting and finance journals.Design/methodology/approachThe analysis combines a structured literature review with citation analysis, topic modeling using a machine learning (ML) approach and a manual review of selected articles published between 2000 and 2021.FindingsThis paper contributes to corporate governance and ESG literature by conducting an in-depth review, offering a comprehensive analysis of the existing findings and identifying future research directions. From the reviewed literature, this paper proposes the following thematic areas: board characteristics, ownership structure and their impact on a company’s engagement in ESG activities; CEO characteristics and their influence on a company’s involvement in ESG activities; corporate governance and ESG as sources for transparency and legitimacy; internal and external assurance of a company’s involvement in ESG activities; and gender diversity and a company’s involvement in ESG activities.Originality/valueThe study provides a comprehensive understanding of corporate governance and ESG literature. The innovative combination of methods, including ML and manual techniques, enhances the ability to identify key research topics and uncover research directions in the field. Moving forward, this paper suggests several promising directions for future research, including examining the influence of emerging technologies on ESG reporting and assessing the impact of regulatory changes and context on the link between corporate governance and firms’ involvement in ESG practices.

Impact of country-specific business integrity and firm-specific ESG on earnings quality: evidence from EU civil law jurisdictions

Purpose This paper aims to examine whether variations in country-specific business integrity (BI) and firm-specific environmental, social and governance (ESG) dimensions can explain variations in earnings quality (EQ) in Northern and Southern EU civil law countries. Design/methodology/approach Regarding EQ, the analysis builds on the “small gain, small loss” (SGSL) model of Burgstahler and Dichev (1997) and Burgstahler and Chuk (2015). The authors explain SGSL with the BI. Southern Europe or “Club Med” is typically associated with a less rigorous institutional regime than Northern Europe. Findings Results evidenced higher EQ in the Northern EU compared with the Southern EU. Furthermore, EQ is explained successfully with the Business Integrity Index (BII) and ESG. The results suggest that BII and ESG represent different dimensions, and, therefore, both should be included in the models explaining EQ. Practical implications The results show that the Northern EU civil law countries have higher EQ compared with the Southern EU civil law countries. The difference is explained by the BII variable. For the Southern EU, legislators and other public policy decision-makers should build up and apply tools to limit and fight corruption in those jurisdictions. The impactful elimination of corruption would, in turn, establish a firmer basis to foster ethical behavior and financial market sophistication developments. Originality/value The study offers additional insights on the determinants of EQ in the EU civil law countries. The prior literature has argued that, categorically, in common law countries firms engage in higher-quality reporting than those in civil law countries. The results evidence that EQ varies within the EU civil law countries; that is, a country’s BI and firm-specific ESG contribute to the explanation for EQ. A more specific explanation for the reasons in the EQ “within” civil law jurisdictions could be related to legislators and other public policy decision-makers in charge of establishing regimes and public policies supporting high-quality accounting.