Abstract
This study aims to examine the influence of company size, managerial ownership, and conflict of interest to accounting conservatism with leverage as the moderating variable. The population was mining companies and infrastructure, utilities, and transportation companies which were listed on the Indonesia Stock Exchange (IDX) from 2015 to 2018, which are 118 companies. The sample was determined by purposive sampling which resulted in 12 companies with 36 units of analysis. The data were collected by using documentaries. The analysis techniques used descriptive and inferential with the help of IBM SPSS version 21. The results showed that managerial ownership had a negative influence and conflicts of interest had a positive influence to accounting conservatism, company size had not influenced to accounting conservatism, and leverage moderated the relationship of managerial ownership to accounting conservatism, but it was unable to moderate the relationship of company size and conflict of interest to accounting conservatism. The conclusion of this study is the low managerial ownership presses the existence of expropriation; therefore, it can increase the accounting conservatism. The high conflict of interest increases the application of accounting conservatism to reduce conflicts that occur. Meanwhile, leverage influences the company’s financial risk, therefore it is able to moderate the influence of managerial ownership to accounting conservatism.
 Keywords: Accounting Conservatism; Company Size; Conflict of Interest; Leverage; Managerial Ownership
Highlights
Financial statement is a report that reflects corporate performance in a certain period
This study aims to examine the influence of company size, managerial ownership, and conflict of interest to accounting conservatism with leverage as the moderating variable
The results showed that managerial ownership had a negative influence and conflicts of interest had a positive influence to accounting conservatism, company size had not influenced to accounting conservatism, and leverage moderated the relationship of managerial ownership to accounting conservatism, but it was unable to moderate the relationship of company size and conflict of interest to accounting conservatism
Summary
Financial statement is a report that reflects corporate performance in a certain period. Harrison Jr. et al (2012) stated financial statements as business documents intended for various user groups, including managers, investors, creditors, and regulatory agents to report the results of company activities. In accordance with International Financial Reporting Standards (IFRS) Framework, financial statements aim to provide information regarding the financial position, performance, and changes in the financial position of an entity that are useful to users when making economic decisions. The qualified financial statement which is in accordance with the applicable standards is highly needed so that it can be accounted for. Accounting conservatism is one of the accounting principles that produces relevant and reliable figures which is used as an effort to present qualified financial statements.
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