Determinants of IFRS S2 compliance quality: The mediating role of data capability and the moderating roles of market scrutiny and firm size

Type of the article: Research ArticleThe global business landscape increasingly demands transparent climate reporting, yet factors driving compliance quality remain unclear. This study examines the organizational and institutional determinants influencing IFRS-S2 compliance quality in Vietnamese enterprises, focusing on sustainability strategic orientation, climate data management capability, and market scrutiny. A quantitative research design was used, and a survey was distributed among managers in Vietnamese enterprises from March to June 2025. A total of 326 valid responses were analyzed using partial least squares structural equation modeling. The results prove that sustainability strategic orientation (β = 0.254, p < 0.001), climate data management capability (β = 0.285, p < 0.001), and market scrutiny (β = 0.209, p < 0.001) have a significant positive effect on IFRS-S2 compliance quality. The mediating role of climate data management capability is also strongly supported. However, the moderating role of market scrutiny was not statistically significant. The study highlights the need to align strategic commitment with data capabilities to enhance climate transparency in an emerging market and provides recommendations for managers and policymakers.Acknowledgment The authors would like to acknowledge the reviewers and the editor-in-chief for their assistance.