Voluntary Social Disclosure in an Emerging Country: The Case of Brazil

José Vale, Ana Santos, Maria C. Tavares and Rui Bertuzi ()
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José Vale: CEOS.PP—Centre for Organisational and Social Studies of Polytechnic of Porto, Porto Accounting and Business School, Polytechnic Institute of Porto, 4465-004 Matosinhos, Portugal
Ana Santos: Porto Accounting and Business School, Polytechnic Institute of Porto, 4465-004 Matosinhos, Portugal
Maria C. Tavares: GOVCOPP—Research Unit on Governance, Competitiveness and Public Policies, Higher Institute for Accountancy and Administration of University of Aveiro (ISCA-UA), University of Aveiro, 3810-193 Aveiro, Portugal
Rui Bertuzi: CEOS.PP—Centre for Organisational and Social Studies of Polytechnic of Porto, Porto Accounting and Business School, Polytechnic Institute of Porto, 4465-004 Matosinhos, Portugal

Administrative Sciences, 2024, vol. 14, issue 12, 1-20

Abstract: This study aims to assess the disclosure extent and quality, as well as the percentage of audited reports, of the Brazilian companies listed on the IBOVESPA stock exchange index and explore some factors that influence disclosure quality. A content analysis of 71 annual sustainability (or similar) and integrated reports was conducted, focused on the social dimension. Multiple linear regression was used to assess the relationship between the disclosure quality index and being audited by a Big Four company, the number of members on the board of directors, the use of the Global Reporting Initiative (GRI) standards in the preparation of the reports, and the type of industry. The results suggest that although the disclosure extent is reasonable, its quality is poor. In addition, considering its voluntary nature, the disclosure-auditing index is deemed satisfactory. The results also suggest that the disclosure quality of Brazilian companies is positively and significantly influenced by being audited by a Big Four company, by adopting the GRI standards, by the number of members composing the board of directors, and by belonging to the “Energy and utility” industry. This study contributes to the extant literature by assessing the disclosure extent and quality and the percentage of audited reports of companies in an emerging economy setting—Brazil—and exploring some factors which influence the disclosure quality in emerging countries’ companies, such as auditing by a Big Four company, which has thus far been unexplored. It also contributes to increasing the awareness of the theme among managers.

Keywords: disclosure auditing; disclosure extent; disclosure quality; emerging country; social responsibility (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2024
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