How Auditor Professional Mood Affects ESG Reporting Quality in Vietnamese Firms: The Moderating Role of CEO Duality and Audit Committee Independence

Abstract

Manuscript type: Research paper
Research aims: The study explores the impact mechanism of auditor
mood (via auditor professional burnout – AUPB) on ESG reporting
quality. The study also investigates whether this relationship is influenced
by the moderating mechanism of audit committee (AC) independence and
chief executive officers (CEO) duality.
Design/Methodology/Approach: The study uses data from Thomson
Reuters Asset4 to collect a sample size of 164 Vietnamese firms during
the period 2020-2024 (820 firm-year observations). A system-generalised
method of moments regression estimation approach is taken.
Research findings: First, AUPB has a positive impact on ESG reporting
quality. Second, CEO duality weakens the positive influence of AUPB on
the quality of ESG reporting. Third, AC independence strengthens the
relationship between AUPB and ESG reporting quality.
Theoretical contribution/Originality: The study contributes to agency
theory by expanding the understanding of how the interaction between
external monitoring mechanisms and internal monitoring mechanisms
affects ESG reporting quality.
Practitioner/Policy implication: Auditors need to exert more effort in
auditing to enhance the quality of ESG reporting. Audit firms should
create conditions for auditors to feel most comfortable when working.
Client firms should reduce CEO duality as well as increase independent
AC to improve management and monitoring capacity to improve ESG
reporting quality.
Agency theory,Research limitation: Focusing only on an emerging economy like
Vietnam may limit the generalisability of the findings.