viewpoints. Thus, it is an objective resource for data collection that is leading to objective results and findings
(Saunders et al. 2009; Sekaran 2000, 2003).
6.2 Research Methods
The research employs explanatory research techniques that
use empirical/experimental techniques for testing causal
relationships between different variables under controlled
conditions. These techniques use quantitative data to show
the strength of relationships between different variables to
make inferences about tested variables. This explanatory
quantitative research has to test the effect of the assurance of
report discussed in the literature review section, through
making precise predictions about the change in a certain
dependent factor/variable (i.e., Quality of SR) because of the
change in the independent factor/variable (i.e., Assurance of
Report). These predictions can best determine accurate
cause-and-effect relationships among the different variables,
which are required by the research. Accordingly, the best
statistical analysis to fulfill these tasks is the Regression
Analysis, which is employed by the research (Hinton and
McMurray 2017; Sekaran 2000, 2003; Fawcett and Downs
1986; Dougherty 2002; Mason et al. 1999). There are several
types of regression analyses that are applied in the social
sciences, the most well-known and applied among these
types are the Linear Regression and the Logistic Regression.
More specifically, to the most knowledge of the researcher,
the quantitative empirical studies that evaluated the corporate SR used either an Ordinary Least Squares Linear
Regression or Logistic Regression (Nobanee and Ellili 2016;
Latridis 2013; Lanis and Richardson 2013; Rupley et al.
2012; Fernandez-Feijoo et al. 2016; Brown and Hillegeist
2007). Linear Regression is used in case that the dependent
variable of the research relationship is represented in Ratio
values, i.e., normal numbers. However, Logistic Regression
is used in case that the dependent variable is represented in
Category values (Categorical), i.e., values representing different categories. Since the research dependent variable that
is the Quality of SR is divided into categories of quality
levels as will be explained in the next section, then the
Logistic Regression (LR) is the most convenient type of
regression to be applied in this research. More specifically,
the Ordinal Logistic Regression (OLR) type of LR is the
most appropriate statistical technique that can test a proposed relationship for which the categories of the dependent
variable (QSR) have a natural order of more than two categories while taking into consideration the rank ordering of
the outcomes (Fernandez-Feijoo et al. 2016; Koletsia and
Pandis 2018; Montañés et al. 2014; Kleinbaum and Klein
2010).
6.3 Research Variables and Estimating Equation
Dependent Variable:
Quality of Sustainability Reporting (QSR) This variable is
defined as the quality assessment of the corporate sustainability report in terms of each company’s level of adherence
to the GRI performance indicators. From which a GRI-based
grade has been agreed to act as a measurement for the
quality of corporate SR. This grade aims to enable companies to provide standardized and qualified sustainability
information within, or in addition to, its annual audited
financial statements (Latridis 2013; Daub 2007; Lozano
2013; Rupley et al. 2012). Consequently, based on the
previously mentioned inspiring researches, the level of
adherence to the GRI indicators is used as a measurement for
the quality of SR.
According to the guidelines of the GRI organization,
there are 79 performance indicators required to be disclosed
in the corporate sustainability report, in relation to the economic, social, and environmental aspects of the organization. The level of adherence to these indicators is determined
by a grade, which reflects the number of indicators that are
included and fulfilled within the corporate report, out of the
total 79 performance indicators. There are 6 grades that are
used to measure the level of adherence to the GRI, as follows: A, B, C, D, E, and F. These 6 grades represent ordered
levels of adherence, respectively. An A grade means that
most indicators of the GRI guidelines are addressed in the
corporate sustainability report. F means zero indicators have
been shown to be addressed in the corporate sustainability
report. Accordingly, this variable is considered as a Discrete,
Categorical variable, as it is measured in six categories of A,
B, C, D, E and F and the difference between these categories
does not represent an equal measurement scale. In addition,
this variable can also be called an Ordinal, Categorical
variable as it consists of categories that are ranked by certain
order (Hubbard 2011; https://www.globalreporting.org/
standards/getting-started-with-the-gri-standards/).
Independent Variable:
Assurance of the Sustainability Report (ASR) This variable
is defined as whether the corporate sustainability report is
assured by an independent, third party. The Assurance of the
Sustainability Report has been extensively applied by
researches that studied the assessment of corporate SR as an
indicator for the quality of sustainability report (Latridis
2013; Ane 2012; Lamberton 2005; Rowbottom and Lymer
2009; de Villiers and van Staden 2006; Fernandez-Feijoo
et al. 2016; Samudhram et al. 2016; Hammond and Miles
192
N. A. El-Rahman
(Saunders et al. 2009; Sekaran 2000, 2003).
6.2 Research Methods
The research employs explanatory research techniques that
use empirical/experimental techniques for testing causal
relationships between different variables under controlled
conditions. These techniques use quantitative data to show
the strength of relationships between different variables to
make inferences about tested variables. This explanatory
quantitative research has to test the effect of the assurance of
report discussed in the literature review section, through
making precise predictions about the change in a certain
dependent factor/variable (i.e., Quality of SR) because of the
change in the independent factor/variable (i.e., Assurance of
Report). These predictions can best determine accurate
cause-and-effect relationships among the different variables,
which are required by the research. Accordingly, the best
statistical analysis to fulfill these tasks is the Regression
Analysis, which is employed by the research (Hinton and
McMurray 2017; Sekaran 2000, 2003; Fawcett and Downs
1986; Dougherty 2002; Mason et al. 1999). There are several
types of regression analyses that are applied in the social
sciences, the most well-known and applied among these
types are the Linear Regression and the Logistic Regression.
More specifically, to the most knowledge of the researcher,
the quantitative empirical studies that evaluated the corporate SR used either an Ordinary Least Squares Linear
Regression or Logistic Regression (Nobanee and Ellili 2016;
Latridis 2013; Lanis and Richardson 2013; Rupley et al.
2012; Fernandez-Feijoo et al. 2016; Brown and Hillegeist
2007). Linear Regression is used in case that the dependent
variable of the research relationship is represented in Ratio
values, i.e., normal numbers. However, Logistic Regression
is used in case that the dependent variable is represented in
Category values (Categorical), i.e., values representing different categories. Since the research dependent variable that
is the Quality of SR is divided into categories of quality
levels as will be explained in the next section, then the
Logistic Regression (LR) is the most convenient type of
regression to be applied in this research. More specifically,
the Ordinal Logistic Regression (OLR) type of LR is the
most appropriate statistical technique that can test a proposed relationship for which the categories of the dependent
variable (QSR) have a natural order of more than two categories while taking into consideration the rank ordering of
the outcomes (Fernandez-Feijoo et al. 2016; Koletsia and
Pandis 2018; Montañés et al. 2014; Kleinbaum and Klein
2010).
6.3 Research Variables and Estimating Equation
Dependent Variable:
Quality of Sustainability Reporting (QSR) This variable is
defined as the quality assessment of the corporate sustainability report in terms of each company’s level of adherence
to the GRI performance indicators. From which a GRI-based
grade has been agreed to act as a measurement for the
quality of corporate SR. This grade aims to enable companies to provide standardized and qualified sustainability
information within, or in addition to, its annual audited
financial statements (Latridis 2013; Daub 2007; Lozano
2013; Rupley et al. 2012). Consequently, based on the
previously mentioned inspiring researches, the level of
adherence to the GRI indicators is used as a measurement for
the quality of SR.
According to the guidelines of the GRI organization,
there are 79 performance indicators required to be disclosed
in the corporate sustainability report, in relation to the economic, social, and environmental aspects of the organization. The level of adherence to these indicators is determined
by a grade, which reflects the number of indicators that are
included and fulfilled within the corporate report, out of the
total 79 performance indicators. There are 6 grades that are
used to measure the level of adherence to the GRI, as follows: A, B, C, D, E, and F. These 6 grades represent ordered
levels of adherence, respectively. An A grade means that
most indicators of the GRI guidelines are addressed in the
corporate sustainability report. F means zero indicators have
been shown to be addressed in the corporate sustainability
report. Accordingly, this variable is considered as a Discrete,
Categorical variable, as it is measured in six categories of A,
B, C, D, E and F and the difference between these categories
does not represent an equal measurement scale. In addition,
this variable can also be called an Ordinal, Categorical
variable as it consists of categories that are ranked by certain
order (Hubbard 2011; https://www.globalreporting.org/
standards/getting-started-with-the-gri-standards/).
Independent Variable:
Assurance of the Sustainability Report (ASR) This variable
is defined as whether the corporate sustainability report is
assured by an independent, third party. The Assurance of the
Sustainability Report has been extensively applied by
researches that studied the assessment of corporate SR as an
indicator for the quality of sustainability report (Latridis
2013; Ane 2012; Lamberton 2005; Rowbottom and Lymer
2009; de Villiers and van Staden 2006; Fernandez-Feijoo
et al. 2016; Samudhram et al. 2016; Hammond and Miles
192
N. A. El-Rahman