The Role of Independent Assurance Providers in Legitimizing Companies’ Environmental, Social and Governance Risks

DOI

10.2991/978-94-6463-244-6_16How to use a DOI?

Keywords

ESG Risk; Big-4; Legitimacy Theory

Abstract

This study aims to examine the impact of environmental, social and governance (ESG) risks in selecting independent auditors based on legitimacy theory. This study expects that companies with lower ESG risk levels will increase user trust by hiring reputable independent auditors to increase the reliability and credibility of their reports. This study conducted empirical testing using the logit model. The data used were obtained from the OSIRIS database, the company’s website and the CSRHub database, especially for the ESG risk rating. The results prove that companies with low ESG risk levels will legitimize their reporting by involving reputable auditors (Big-4) to audit their financial reporting.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Senny Harindahyani
AU  - Bambang Tjahjadi
PY  - 2023
DA  - 2023/09/30
TI  - The Role of Independent Assurance Providers in Legitimizing Companies’ Environmental, Social and Governance Risks
BT  - Proceedings of the 20th International Symposium on Management (INSYMA 2023)
PB  - Atlantis Press
SP  - 86
EP  - 92
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-244-6_16
DO  - 10.2991/978-94-6463-244-6_16
ID  - Harindahyani2023
ER  -