National cultural dimensions and materiality assessment disclosure in sustainability reporting: cross-country evidence from the world’s leading companies

Materiality assessment is increasingly used in sustainability reporting to enhance transparency in identifying material sustainability issues. However, limited studies examine the determinants of materiality assessment disclosure (MAD), particularly at the country level. Drawing on stakeholder theory, this study investigates how national cultural dimensions influence MAD in sustainability reporting. Using a cross-country sample of 566 firm-year observations from the world’s largest 250 companies by revenue (G250) over the period 2018–2021, this study employs ordinary least squares (OLS) regression with clustered standard errors to examine the relationship between national cultural dimensions and MAD. The results indicate that Hofstede’s cultural dimensions are significantly associated with MAD. Specifically, power distance, individualism, and masculinity have negative effects on MAD, whereas uncertainty avoidance has a positive effect on MAD. This study extends the empirical MAD literature by identifying national cultural dimensions as important country-level determinants of MAD and provides valuable practical insights for managers, policymakers, and sustainability standard-setters.