Determinants of sustainability information assurance and assurance providers in Latin America: does the board of directors count?

Purpose This paper has two primary objectives. First, it seeks to examine the relationship between corporate governance factors and the assurance of sustainability information among publicly listed companies in Latin America from 2016 to 2019. Second, it aims to provide empirical evidence on corporate governance factors that impact the selection of sustainability assurance service providers. Design/methodology/approach This study used a balanced panel of 120 publicly listed companies in Latin America, drawing on data from sustainability reports, assurance reports and their corporate governance characteristics. Logistic regressions were applied to evaluate the relationships among the variables studied. A likelihood ratio (LR) test with pρ = 0 was used to determine the appropriate type of regression, and a Hausman test was conducted to select the regression model for panel data analysis. Findings The findings indicate that the presence of women on the board of directors and the existence of a sustainability committee have a positive and significant relationship with the decision to assure a sustainability report. Conversely, CEO duality negatively influences this decision. Regarding the choice of an assurance provider, the results show that both the presence of a sustainability committee and CEO duality negatively impact the selection of an accounting provider − specifically, a Big Four firm − to assure a sustainability report. Originality/value This study focuses on the Latin American context, a region that is under-researched in the field of sustainability assurance despite its importance in terms of biodiversity, contributions to achieving the Sustainable Development Goals and high socio-environmental conflict. By incorporating corporate governance aspects specific to this region, the study provides an analytical framework that can deepen the understanding of sustainability assurance in emerging economies. Furthermore, unlike prior studies that treat CEO duality merely as a control variable, this research frames it as a central explanatory factor, justified by the distinct corporate governance structures in the region, characterized by high ownership concentration and the dominance of family firms by updating empirical evidence on the evolution of assurance practices in Latin America, this work makes a significant contribution to the existing sustainability literature.