Scope of Research Sampling Method

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CHAPTER III RESEARCH METHODOLOGY

A. Scope of Research

This research is quantitative research by using step descriptive relationship and evaluation to prove the relationship between profitability, leverage, size of board commissioner and sustainability disclosure. The independent variable in this research is profitability, leverage and size of board commissioner that proxy by ROA, DAR and BOC meanwhile the dependent variable is sustainability reporting index based on GRI ratio. The scope of this research is limited to Indonesian companies that participated in Indonesia sustainability award 2012 until 2015. In total there are 64 sustainability reports, the report have been coded, analyzed and scored as content analysis. The target of this research is companies that published their sustainability report in their website. This research will use purposive sampling method regarding sustainability report is voluntary report.

B. Sampling Method

Sampling method is the method that take only little part of data that show all population. It‟s called a sample because it‟s a subset of population that consider also as member of population. The population of this research is the participant of sustainability award. The reason choosing companies that participated sustainability award as a sample is because the most of companies that participated in energy and mining sectors, also because most companies 41 that join sustainability award have high confidence in social and environmental performance and also because most participant use GRI as a guideline. This research will conduct purposive or judgment sampling. Researcher determines several criteria to take sample: 1. The selected companies are companies which are categorized in Indonesian stock exchange. 2. The observed companies published annual report on the company website from 2011 – 2014. 3. The observed companies published sustainability reporting on company website from 2011 – 2014. 4. The observed companies published the sustainability reporting separately or differently with annual report. 5. The observed companies used GRI as guidance for sustainability reporting From the criteria above the researcher can decrease the total population that participated in sustainability report award 2012 until 2015 from 59 companies become 16 sampling companies . The total sustainability report and annual report used in this research is from 2011 – 2014.

C. Data Collection Method