ORIGINAL RESEARCH PAPER
Regional and Sectoral Convergence in EU Taxonomy Disclosure Quality Evidence from Nordic and Dach Firms
by
Maja Letica 1
, Robert Michael Just 2 
1 University of Mostar, Mostar, Bosnia and Herzegovina
2 PanEuropean Studies, Einstadt, Austria
ABSTRACT
This study examines the quality of disclosures under the European Union (EU) Taxonomy among 171 publicly listed companies headquartered in the Nordic countries (Denmark, Sweden, Norway, Finland) and the DACH region (Austria, Germany, Switzerland), based on 342 firm-year observations from the 2024 and 2025 reporting periods. Disclosure quality is assessed through three dimensions – accessibility, detail and visual clarity – which are combined into a composite Disclosure Quality Index, and complemented by an assessment of external verification practices. Drawing on institutional and legitimacy theory, the study tests whether disclosure quality differs systematically between Nordic and DACH firms, between banking and non-banking firms in their propensity to obtain external assurance, and between manufacturing and financial/insurance firms in disclosure granularity, using non-parametric statistical methods; an exploratory analysis further examines variation across all NACE industry groups represented in the sample. Across all tests, no statistically significant regional or sectoral differences in disclosure quality are found. These findings suggest that the binding and harmonised regulatory framework of the EU Taxonomy is associated with convergence of disclosure practices across regions and sectors that have historically differed in terms of voluntary reporting maturity. The study contributes to the recent literature on compliance with the EU Taxonomy by directly assessing the quality of disclosures, rather than the mere existence of disclosures, and by examining whether institutional and sectoral differences persist after the introduction of a mandatory reporting regime.
Keywords: EU Taxonomy, disclosure quality, sustainability reporting, Nordic countries, DACH region, institutional theory
HOW TO CITE THIS ARTICLE
Letica M., Just R. (2026). Regional and Sectoral Convergence in EU Taxonomy Disclosure Quality Evidence from Nordic and Dach Firms, MAP Social Sciences, 7, 51-61. doi: https://doi.org/10.53880/2744-2454.2026.7.51