PROPOSAL ASSIGNMENT

NAME : MUHAMMAD ADZAN RAMADHAN

SN : 2002135966

1. Research Tittle

“The Effect of Auditor, External Assurance, Politic Visibility, and Board of Direrctors to

Sustainability Reporting Disclosure”

2. Variables

Variables Explaination

Indpendent (X) Auditor The public accountant plays

a vital role in a firm, as it

audits financial statements.

Research by Ahmad,

Hassan, and Mohammad

(2003) conducted in

Malaysia also found that

firms audited by the Big 4

tend to report higher

environmental disclosure

External Assurance External assurance can play

a significant role that has

already been proven to

affect the perception of

 increased credibility and

reliability. Hodge et al.

(2009) concluded that to

make information on social

and environmental issues

more dependable, a

statement of assurance

should be involved. Still, it

can be more effective when

the assurance comes from

reliable accounting firms,

which are considered to be

more accurate

Politic Visibility Tatang (2002) says that the

costs incurred in disclosing

political aspects are termed

political visibility. These

costs are the company's

external costs arising from

views of anxiety, political

pressure from society, the

environment, and the

government from the

 company's operational

activities.

Board of Director According to Widianto

(2011: 47), the board of

directors has the function

and authority to control the

implementation of the

company's wheels every

day, according to strategic

policies as a guarantor for

the realization of the

principles of accountability

and fairness contained in

GCG. This relates to

accountability and fairness

in sustainability reporting

disclosure

Dependent (Y) Sustainability Report Disclosure Based on the Global

Initiative Reporting (2016)

"Sustainability reporting is

the practice of an

organization that publicly

reports its economic,

 environmental and/or social

impacts, and therefore also

on the contribution of the

organization positively or

negatively to sustainability

goals". Through this

process, organizations

identify significant

economic, environmental

and/or social impacts and

issue them based on

globally accepted

standards.

3. Research Model

Auditor (X1)

External Assurance (X2)

Sustainability
Reporting
Disclosure
(Y)
Politic Visibility (X3)

Board of Director (X4)

 X = Independent Variable
Y = Dependent Variable
4. Measurement
Variable Measurement
the Auditor is proxied by dummy variables.
A value of 1 is for a firm audited by the Big
4, and a value of 0 is for firms audited by a
Auditor (X1)
non-Big 4 company. This proxy is in line
with Huang and Kung (2010) and Lu and
Abeysekara (2014).
External assurance on sustainability report
disclosure (DASR) is used as the
independent variable in this research. This
variable is measured using the contents of
assurance statements proposed by Bepari &
External Assurance (X2) Mollik (2016), which is calculated by
counting the contents of the assurance
statements disclosed by a company, 1 or 0. If
an item is disclosed, it will be valued 1, and
the total disclosed criteria would be summed
𝑇𝑜𝑎𝑙 𝐷𝑖𝑠𝑐𝑙𝑜𝑠𝑒𝑑
up. 𝑥 100%
14
using dummy variables (ie valuation
variables), namely: 1 = companies included
in the high-profile industry and 0 =
companies included in the low-profile
industry.
High-Profile comprises the agribusiness,
mining, tobacco, cigarette, petroleum, paper,
Politic Visibility (X3)
chemical, automotive, aviation,
transportation, food and beverage,
communications and media, tourism and
health industries. While the low profile
groups are: finance and banking, buildings,
property, retailers, textiles, and household
products
According to Sari (2013: 42) the board of
directors is proxied by the number of board
of directors meetings within 1 (one) year.
The Board of Directors is required to hold a
Board of Director (X4) meeting at least once a month in accordance
with OJK Regulation No.33/POJK.04/2014.
So that it uses a dummy variable, namely 1 =
companies whose board of directors fulfills
the holding of meetings at least 12 times a

Sustainability Reporting (Y)
year. 0 = companies whose boards of
directors do not comply with holding
meetings
In this study, the variable of Sustainability
Report disclosure was measured by the
Sustainability Report Disclosure Index
(SRDI) based on GRI G4 which was
previously carried out by Simbolon and
Memed (2016), Nasution and Adhariani,
(2016); Qisthi and Fitri, (2020) as a quality
measure sustainability report. The scoring
scale is from 0 to 1, a score of 0 is given if
the company does not disclose the item in
question and a score of 1 is given if the
company discloses the item in question that
applies to the general and specific standards
that have been set.
𝑇𝑜𝑡𝑎𝑙 𝑜𝑓 𝐷𝑖𝑠𝑐𝑙𝑜𝑠𝑒𝑑
𝑇ℎ𝑒 𝑒𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑖𝑡𝑒𝑚𝑠 𝑖𝑠 𝑑𝑖𝑠𝑐𝑙𝑜𝑠𝑒𝑑