Sustainability reporting in global listings context: a legitimacy theory evaluation of relevant empirical evidence

Purpose This paper aims to examine firm-level factors that can be associated with the quality of sustainability reporting. As suggested by the legitimacy theory, these practices are external assurance of the sustainability report, independence of the board members and chair. Design/methodology/approach The study investigated the 100 Global Fortune Companies (G100) for five years from 2011 to 2015 to collect data on the quality of sustainability reporting and the factors suggested for their impact on that quality. The quality of sustainability reporting is measured using the Global Reporting Initiative assessment criteria. Findings The study reveals that firms that externally assure their sustainability reports are evidently providing higher-quality reports. This conforms and coincides with the current global efforts of the concerned regulatory bodies towards mandating the external assurance of corporate sustainability reports, because of its pivotal role in leveraging the reports’ information quality for the stakeholders. Practical implications The study results would be of interest to firm managers, assurance firms and stakeholders’ relying on disclosures for decision-using information, since the findings indicate external review is significantly correlated with quality reporting. Ultimately, an independent review process is a positive factor driving quality sustainability reporting. Originality/value The study extends the existing literature on sustainability reporting by demonstrating the significant association of certain firm-level practices with improving the quality of sustainability reports with their economic, social and environmental dimensions. Moreover, the study is distinguished by verifying such an association on a global level, which manifests its vitality in leveraging the report’s quality, and thus its usefulness, globally.