Abstract
This study aims to examine the effect of managerial ownership and investment opportunity set (IOS) on accounting conservatism with capital intensity as a moderating variable. The population was the manufacturing companies listed in the Indonesia Stock Exchange (IDX) from 2016-2018 as many as 184 companies. The sampling technique was purposive sampling technique and selected 39 units of analysis from 16 companies. The collection of research data used documentation technique. The analysis of research data used descriptive statistics and inferential statistics. The hypothesis testing used moderating regression analysis with an absolute difference test using IBM SPSS 24 tools. The results showed that investment opportunity set (IOS) had a significant positive effect while managerial ownership did not affect on accounting conservatism. Capital intensity could not significantly moderate the effect of managerial ownership and investment opportunity set (IOS) on accounting conservatism. Based on the result of this research, the conclusion is investment opportunity set (IOS) has a significant positive effect on accounting conservatism. The companies with higher investment opportunity sets (IOS) are able to increase the application of the accounting conservatism principles.
 Keyword: Accounting Conservatism; Managerial Ownership; Investment Opportunity Set (IOS); Capital Intensity
Highlights
Financial statement is a report that reflects corporate performance in a certain period. Wahyudin & Khafid (2013) defined financial statements as the output of the financial accounting activity process
The results showed that investment opportunity set (IOS) had a significant positive effect while managerial ownership did not affect on accounting conservatism
This study examines the effect of managerial ownership and the investment opportunity set on accounting conservatism with moderation in the form of capital intensity
Summary
Financial statement is a report that reflects corporate performance in a certain period. Wahyudin & Khafid (2013) defined financial statements as the output of the financial accounting activity process. Financial statement is a report that reflects corporate performance in a certain period. The presentation of financial statement is a form of management responsibility to investors which contains company resources management. The presentation of qualified financial reports is one of which is influenced by conservatism considerations (Zeghal & Lahmar, 2018). Accounting conservatism according to Marzuki & Wahab (2018) is a precautionary principle in financial reporting, which is the recognition and measurement of assets and profits by companies without a doubt, but losses and debts which may arise are recognized immediately. Companies are considered necessary to have a pessimistic attitude to reduce the tendency to exaggerate in financial reporting so that it can coexist with the excessive optimism of managers and owners.
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