Environmental Accounting Recognition and Market Informativeness: Insights from IFRS and USA GAAP Settings Aston University in United Kingdom

This doctoral project at Aston University investigates the impact of environmental accounting recognition on market informativeness, focusing on the differences between IFRS and US GAAP settings. As global climate risks intensify, regulators and standard-setters are strengthening sustainability reporting requirements, with the introduction of IFRS S1 and S2 marking a shift toward globally standardised sustainability disclosure. The project addresses whether enhanced environmental disclosure alone improves financial reporting quality, or if formal recognition of environmental obligations within audited financial statements is necessary for greater market transparency.

The research will examine how the financial statement recognition of environmental costs and liabilities—such as provisions, remediation costs, decommissioning liabilities, impairments, and related expenditures—affects analyst forecast quality and the broader information environment for capital market participants. By moving beyond broad ESG disclosure scores, the study focuses on recognised environmental obligations that directly impact earnings and balance sheet positions, offering measurable consequences for investors and analysts.

Employing a cross-country comparative design, the project analyses firms listed in the United Kingdom and the United States, providing a rigorous evaluation of how IFRS and US GAAP differ in shaping the recognition and usefulness of environmental accounting information. This approach enables a unique assessment of how variations in accounting standards influence the informativeness of environmental disclosures and their effects on capital markets.

The position is based at Aston University's College of Business and Social Sciences, located on the Aston Campus in Birmingham, UK. The successful candidate will engage in empirical archival research, textual analysis, and work with large datasets, using statistical tools such as Stata, R, or Python. Prior experience in sustainability/ESG reporting, awareness of current developments in sustainability reporting, and familiarity with financial databases (Bloomberg, LSEG Workspace, Compustat) are desirable.

Funding for this project covers all tuition fees. However, candidates are responsible for their own living expenses, relocation costs, and campus visits. International students must meet financial requirements for visa, flights, and NHS Surcharge. Further information on financial requirements is available on the Aston University website.

Applicants must hold, or expect to achieve, a First or Upper Second Class Honours undergraduate degree and a Masters degree with Merit or Distinction in relevant subjects. Overseas qualifications will be considered if equivalent. Required skills include strong quantitative abilities, familiarity with statistical analysis, solid understanding of financial reporting and accounting principles, and ability to work with large datasets. English language proficiency is required, and evidence can be submitted later.

To apply, submit a complete application with all supporting documents, including transcripts, certificates, research statement, personal statement, CV, two academic references, evidence of English proficiency, and passport copy. Incomplete applications will be automatically rejected. Interviews will be conducted online via Microsoft Teams for shortlisted candidates.

For project enquiries, contact Dr A Allam at [email protected]. For application process questions, contact the Postgraduate Admissions team at [email protected]. The application deadline is May 18, 2026.