Effect of Managerial Ownership, Audit Committee, Profitability and Leverage on Accounting Conservatism

Abstract

Abstract
 This study aims to examine the effect of managerial ownership, audit committee, profitability and leverage on accounting conservatism. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange during the 2015-2019 period. The sampling technique in this study used purposive sampling. The total data used in this study was 494 data during the 2015-2019 period. The analytical technique used in this research is multiple regression analysis. This analysis test was carried out using PLS. The dependent variable in this study is accounting conservatism. Meanwhile, the independent variables in this study are managerial ownership, audit committee, profitability, and leverage. The results of this study indicate that managerial ownership does not affect accounting conservatism. This is because the average level of managerial ownership is low and share ownership does not come only from managerial. The audit committee and profitability affect accounting conservatism where the more members of the audit committee and the higher the profitability value, the higher the accounting conservatism. Meanwhile, the higher the leverage value, the lower the accounting conservatism.
 Key Words: managerial ownership, audit committee, profitability, leverage, accounting conservatism.