Effect of Board of Commissioners Size, Company Size, Growth Opportunity, and Profitability Against Prudence Accounting

Abstract

Prudence accounting is the principle of prudence in financial reporting. The number of cases of misappropriation of financial statements by manipulating financial statements is due to the lack of application of the principle of prudence accounting. This study aims to examines the effect of board size, company size, growth opportunity, and profitability on prudence accounting. The population of this study consisted of 21 pharmaceutical companies listed on the Indonesia Stock Exchange. Determination of the sample using non-probability sampling with purposive sampling technique, thus obtaining a research sample of 13 companies with a research period of 4 years (2019-2022), so that the total number of samples used was 52. The data analysis methods used are panel data regression analysis, determination coefficient test, f statistical test, and t statistical test using eviews 12 software. The results of this study indicate that the size of the board of commissioners has no effect on prudence accounting. While the variables of company size, growth opportunity and profitability have a significant effect on prudence accounting. The results of the f test show that the size of the board of commissioners, company size, growth opportunity and profitability simultaneously affect prudence accounting.