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Do voluntary disclosure standards work? Evidence from the GRI in the extractive sector
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- Author / Creator
- Smirnow, Darya E
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The Global Reporting Initiative (GRI) is the most commonly adopted voluntary standard for environmental, social, and governance (ESG) disclosures. Yet, notably, claims of GRI adoption are not subject to any mandatory enforcement mechanisms. Thus, I investigate whether the GRI is an effective standard—whether firms which claim to adopt the GRI demonstrate stronger ESG disclosure quality and ESG performance. The results indicate that GRI adoption is positively associated with disclosure quality, consistent with signaling theory. The results also indicate that GRI adoption is positively associated with ESG performance through its effect on disclosure quality. I find further evidence of compliance as more stringent levels of GRI application are associated with higher disclosure quality. The results also show a positive relationship between GRI adoption and the presence of ESG disclosure committee and ESG assurance, yet the three mechanisms are independent indicators of disclosure quality. Overall, these findings suggest that in a competitive standard-setting environment of nonfinancial disclosures, the most popular standard provides a credible, independent signal of disclosure quality.
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- Subjects / Keywords
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- Graduation date
- Fall 2020
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- Type of Item
- Thesis
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- Degree
- Doctor of Philosophy
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- License
- Permission is hereby granted to the University of Alberta Libraries to reproduce single copies of this thesis and to lend or sell such copies for private, scholarly or scientific research purposes only. Where the thesis is converted to, or otherwise made available in digital form, the University of Alberta will advise potential users of the thesis of these terms. The author reserves all other publication and other rights in association with the copyright in the thesis and, except as herein before provided, neither the thesis nor any substantial portion thereof may be printed or otherwise reproduced in any material form whatsoever without the author's prior written permission.