An analytical framework for sustainability reporting quality of publicly listed companies: An empirical investigation from Australia

Abstract

Sustainability reporting quality (SRQ) has remained a subject of debate over a long period with no consensus as to how it should be defined and measured. Prior research remains fragmented theoretically, methodologically and empirically, reflecting a lack of consensus on the meaning of SRQ, its measurement and its theoretical grounding. Against this backdrop, the current thesis contributes to this debate by examining the concept of quality in SRQ from a broad multidisciplinary perspective. Accordingly, the thesis addresses three research questions: RQ1: Is it possible to develop a coherent approach to ‘quality’ in the SRQ from a multi-paradigm perspective?; RQ2: How can a comprehensive framework for assessing ‘quality’ be established in the SRQ using this multi-paradigm perspective?; and the two-part RQ3, RQ3a: What is the nature of SRQ of publicly listed companies when assessed using a comprehensive SRQ framework developed based on a multi-paradigm perspective? and RQ3b: What are the firm-specific internal factors that would impact on the nature of SRQ of these companies?
To address RQ1 of the thesis, a multi-paradigm, multidisciplinary perspective is adopted on quality by drawing on the disciplines of philosophy, management, economics, law, information systems and accounting. In this respect, a normative analysis of quality is carried out under these different discipline areas, reconceptualising SRQ as a multidimensional phenomenon. Based on this multidisciplinary analysis, the thesis draws four interrelated quality dimensions: objective versus (vs) subjective; primary vs secondary; process-based vs outcome-based; and principles-based vs standards-based, thus providing the theoretically grounded foundation for defining and measuring quality.
To address RQ2 of the thesis, a novel multidimensional SRQ framework is developed based on these four interrelated quality dimensions, providing the foundation for defining and measuring sustainability reporting quality (SRQ). This 33-item framework operationalises these four quality themes and captures both disclosure content and the organisational processes underlying sustainability reporting. This comprehensive SRQ framework, developed based on a multidisciplinary analysis of quality, not only enables empirical assessment of SRQ but also provides a normative lens through which to evaluate the purpose of sustainability reporting.
To address RQ3a of the thesis applies this SRQ framework to 1,000 firm-year observations of Australia’s 100 largest listed companies during a 10-year period (2014–2023) using content analysis of their sustainability reports. The thesis finds that SRQ has improved incrementally, suggesting movement toward substantive sustainability reporting practices. However, the thesis also finds persistent gaps in balanced disclosures, forward-looking disclosures, comparability, and both internal and external assurance mechanisms, which reveal an ongoing tension between symbolic conformity (in terms of legitimacy theory) and substantive accountability (in terms of stakeholder theory) in sustainability reporting in the Australian context.
To address RQ3b, of thesis shows that firm-specific internal factors - sustainability-focused long-term strategic goals, sustainability-integrated management control systems, the external sustainability assurance provider profile and corporate governance attributes (board size, expertise, gender diversity and audit committee oversight) - significantly influence the SRQ outcomes of Australian listed companies based on panel regression analysis. These findings confirm that SRQ is contingent on organisational structure and strategic orientation, in line with contingency theory.
The thesis makes four key contributions. Theoretically, it reconceptualises SRQ through a multidisciplinary analysis of the notion of quality, leading to the development of a theory-informed, reflexive model of SRQ underpinned by four fundamental quality typologies: objective vs subjective; primary vs secondary; process-based vs outcome-based; and principles-based vs standards-based. Methodologically, the thesis advances the field by constructing a comprehensive multidimensional measurement framework for SRQ that overcomes the limitations of fragmented, single-disciplinary proxies used in prior research. Empirically, the thesis validates this measurement framework using evidence from the Australian context, thereby enhancing its applicability and robustness. Practically, the thesis provides insights for policy makers, standard setters, regulators, professional accounting bodies and practitioners to strengthen sustainability reporting practices, drawing on both the study’s conceptual model and its empirical findings.

Date of Award	2026
Original language	English
Supervisor	Habib KHAN (Supervisor) & Benedict SHEEHY (Supervisor)