Identifying and Prioritizing the Determinants of Sustainability Report Credibility: A Stakeholder Perspective

Document Type : Research Paper

Authors

1 Assistant Prof., Department of Accounting, Faculty of Management and Financial Sciences, Khatam University, Tehran, Iran.

2 Assistant Prof., Department of Accounting, Faculty of Economics and Management, Tabriz University, Tabriz, Iran.

10.22059/acctgrev.2026.407942.1009204

Abstract

Objective
: In Iran, national sustainability reporting standards are still in the early stages of development, and there are no binding requirements regarding report content or disclosure practices. Consequently, assessing the credibility of sustainability reports poses significant challenges. The absence of coherent reporting frameworks, inconsistencies in disclosure methods, and the lack of independent assurance mechanisms have generated substantial uncertainty among stakeholders regarding the accuracy and reliability of disclosed information. This study aims to identify the determinants of sustainability report credibility and to evaluate their relative importance from the perspective of key stakeholders. It seeks to distinguish between source-related and message-related factors to provide a structured understanding of how credibility perceptions are formed within Iran’s institutional context.
Methods
Adopting a mixed-methods approach within an interpretive paradigm, the study was conducted in three stages. First, a systematic literature review based on the PRISMA protocol was performed, using the ScienceDirect and Web of Science databases for the period 2013–2025. After applying CASP quality criteria, 21 high-quality studies were retained, resulting in the identification of 44 preliminary determinants. Second, 23 semi-structured interviews were conducted with four stakeholder groups—users, preparers, auditors, and standard-setters. Thematic analysis using NVivo led to the refinement and integration of findings from the first stage, producing a final framework of 50 determinants. Third, fuzzy pairwise comparison questionnaires were completed by 19 experts, and the relative importance of factors was calculated using the fuzzy analytical hierarchy process (FAHP). Matrix consistency was verified, and final weights were estimated through Chang’s extent analysis method.
Results
The results show that the credibility of sustainability reports is influenced by two overarching dimensions: source credibility and message credibility. However, stakeholders place greater emphasis on message credibility when forming perceptions of trust and reliability. Within this dimension, the highest weights were assigned to the completeness and comprehensiveness of disclosures, honesty and transparency, clarity and understandability, the use of reliable and verifiable metrics, and adherence to a structured reporting format. In contrast, selective disclosure, a promotional tone, exaggerated performance claims, and ambiguous language were identified as major threats to credibility. Regarding source credibility, managerial competence and expertise, actual sustainability performance, financial reporting quality, corporate governance structures, institutional environment, and accountability mechanisms were ranked as the most influential determinants. In the absence of independent assurance, stakeholders place greater emphasis on managerial integrity. Additional reinforcing factors include organizational culture, internal sustainability processes, resource allocation, and international market exposure.
Conclusion
Enhancing the credibility of sustainability reports in Iran requires simultaneous attention to both message quality and source credibility. Mandatory disclosure alone is insufficient; strengthening information systems, ensuring consistency in data collection and presentation, and expanding independent assurance mechanisms are essential for building stakeholder trust. Capacity building at the managerial level, improving internal controls over non-financial data, and developing national sustainability reporting standards can play a pivotal role in reducing information asymmetry. The framework developed in this study provides a structured basis for improving sustainability reporting practices and strengthening credibility within Iran’s evolving institutional environment.

Keywords

Main Subjects

References

 
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Accounting and Auditing Review
Volume 33, Issue 2
2026
Pages 273-303

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