Affect Accounting Conservatism Research Articles

The Moderating Effect of Financial Distress in The Relationship Between Debt Covenant and Political Cost Towards Accounting Conservatism Implementation: An Empirical Analysis From SOEs in Indonesia

This study aims to examine the impact of debt covenants and political costs on the implementation of accounting conservatism, with financial distress as a moderation variable. Debt covenants in this study are proxied by the debt-to-assets ratio and political costs are proxied by capital intensity. In this study, financial distress as a moderating variable was measured using the Altman Z-Score Modified and accounting conservatism using an accrual measure. This study used a purposive sampling technique and resulted in a total sample of 51 companies. In this study, research data were obtained from all state-owned enterprises (SOEs) listed on the Indonesian Stock Exchange for the period 2020–2022. The analysis technique used in this research is multiple linear regression analysis with STATA v13. The findings of this study indicate that debt covenants have a significant negative effect on the implementation of accounting conservatism, while political costs do not affect accounting conservatism. Furthermore, this study proves that financial distress can moderate the effect of debt covenants on accounting conservatism. In contrast, financial distress has not shown its ability to moderate the impact of political costs on accounting conservatism. Keywords: Accounting Conservatism, Debt Covenant, Political Cost, Financial Distress

How Profitability, Leverage, Financial Distress, Institutional Ownership, and Capital Intensity affect Accounting Conservatism

This research seeks to ascertain how accounting conservatism is impacted by institutional ownership, profitability, leverage, financial hardship, and capital incentives. The study employs secondary data, specifically manufacturing companies listed on the Indonesia Stock Exchange (BEI) for the 2016–2020 timeframe, using a quantitative correlation research approach. Twenty-six companies made up the research sample. Purposive sampling was the method of sampling that was applied. Analysis using multiple linear regression is the analytical technique employed. The study's findings indicate that while financial distress and capital intensity are related to accounting conservatism, profitability, leverage, and institutional ownership do not. Management implications for accounting conservatism in relation to profitability, leverage, financial distress, institutional ownership, and capital are financial strategies. Implications related to capital intensity can influence the company's financial strategy; if capital intensity is related to the level of accounting conservatism, managers can consider a capital structure that is in accordance with conservative goals

ANALYSIS OF THE FACTORS AFFECTING THE APPLICATION OF CONSERVATISM IN ACCOUNTING

The application of accounting conservatism in the presentation and disclosure of financial information is important and necessary because of the flexibility of management in presenting financial statements with overstated tendencies that can mislead the use of financial statements. The purpose of this study was to analyze the effect of capital intensity, debt covenant, and managerial ownership, both tested one by one and tested together on accounting conservatism in manufacturing companies listed on the Indonesian Stock Exchange (IDX). The research population is manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2018-2020 period. Sample selection using purposive sampling method with predetermined criteria. Based on these criteria, a sample of 88 companies was obtained during the three-year observation period. The data used is secondary data. This study uses multiple linear regression analysis and hypothesis testing using the t-test, F test, and coefficient of determination test. The results showed that the factors that positively affect accounting conservatism are capital intensity and managerial ownership. While the debt covenant factor does not affect conservatism

The Role of Good Corporate Governance in Influenced Accounting Conservatism of Manufacturing Companies in Indonesia

Purpose: This study aims to examine the role of good corporate governance in accounting conservatism.
 Methodology: This study uses a sample of manufacturing companies listed on the Indonesia Stock Exchange for the 2020-2021 period, with a total sample of 72 company-years. The test uses SPSS 25.
 Findings: The study found that independent commissioners and profitability have a significant positive effect on accounting conservatism, while managerial ownership and company size do not affect accounting conservatism.
 Implications: This study provides implications for the theory of accounting conservatism, where the factors of independent commissioners and profitability have a significant effect on accounting conservatism. The presence of independent commissioners in the company will ensure that the company's financial reporting process is well-monitored so that the company is more careful in carrying out its financial reporting. Similarly, with profitability, the presence of high profitability will increase the amount of retained earnings, and the company tends to use more conservative accounting principles to regulate earnings to appear more flat and less volatile.

Does Capital Structure, Audit Quality, and Company Profitability Have an Impact on Accounting Conservatism?

This study examines several factors that influence accounting conservatism: Capital Structure, Audit Quality, and Company Profitability. This study uses quantitative methods. All the manufacturing businesses included in this study are listed on the Indonesia Stock Exchange. Purposive sampling is the foundation of the sample selection technique. Panel regression, an analytical technique combining cross-sectional and time-series data, was employed in this study. The results showed that the capital structure variable did not affect accounting conservatism. Then, the audit quality variable significantly affects accounting conservatism, and the company's profitability variable does not affect accounting conservatism

THE INFLUENCE OF FINANCIAL DISTRESS, DEBT COVENANT AND POLITICAL COST ON ACCOUNTING CONSERVATISM IN BANKING SECTOR FINANCIAL SERVICES COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE

This research aims to prove empirically the effect of financial distress, debt covenants, and political costs on accounting conservatime. This research was conducted in a financial services company in the banking sector listed on the Indonesia Stock Exchange (IDX) in 2016–2020. The research method used is descriptive quantitative. The type of data used is secondary data. Samples were collected using purposive sampling method. The number of companies that were used as research samples were 22 companies with a research period of 5 (five) years, so that 110 samples were obtained. Data processing using Microsoft Office Excel Program and Statistics Program Eviews 9 analyzed descriptive statistics, model suitability test, classical assumption test, coefficient of determination (R2), panel data regression analysis, F statistical test and t statistical test. The results of the F statistical test for financial distress, debt covenants, and political costs variables simultaneously affect accounting conservatism. The results of the t-statistical test for the financial distress variable have a negative effect on accounting conservatism, debt covenants and political costs partially have a positive effect on accounting conservatism.

DETERMINAN FAKTOR FINANSIAL DAN NON FINANSIAL DALAM PENERAPAN KONSERVATISME AKUNTANSI PADA PERUSAHAAN SUB SEKTOR MAKANAN DAN MINUMAN

The financial report represents of company's financial status, and its preparation necessitates the application of accounting conservatism principles. However, the utilization of this principles remains limited in Indonesia. There is assumption that it is because financial factors (financial stress, capital intensity, and profitability) and non-financial factors (institutional ownership and managerial ownership). This research aims to examine the influence of financial factors and non-financial factors on accounting conservatism within the food and beverage sub-sector companies. The research employs a quantitative approach, population of companies within the food and beverage sub-sector, with a sample of 26 companies selected using purposive sampling technique.
 Based on the research findings, the regression analysis equation for panel data is derived as: KA = 0.055968 + 0.004050 FS + 0.047040 CI – 0.534471 PR – 0.096629 IO + 5.452554 + e. The Fixed Effect Model (FEM) is chosen. During the testing of classical assumptions, it is found that the regression model has a normal distribution, no multicollinearity, displays homogeneity, and no signs of autocorrelation. Result from this study concluded that financial stress, capital intensity, institutional ownership, and managerial ownership do not significantly affect accounting conservatism. But, profitability has a significant negative impact on accounting conservatism.

How risk and ambiguity affect accounting conservatism

PurposeThis study aims to examine the diametrically opposite effects of probabilistic (risk) and nonprobabilistic uncertainty (ambiguity) on accounting conservatism.Design/methodology/approachThis study uses panel regression models with year and industry-fixed effects. It uses financial and market data from the communication and energy sectors of 24 countries, encompassing 1,946 firms and 5,838 firm-year observations.FindingsThe study reveals that conservatism is a rational response to risk. However, in the presence of higher ambiguity where uncertainty exceeds firm control and outcomes become unpredictable, management reduces conservative accounting practices. Robustness tests support the validity of these findings across different institutional frameworks, agency risks, sample selection and heterogeneity.Research limitations/implicationsThis study contributes to the existing literature by exploring the contrasting effects of risk and ambiguity on accounting conservatism. It enhances the understanding of how various institutional factors influence the asymmetric recognition of bad news compared to good news under conditions of uncertainty.Practical implicationsBy understanding the role of accounting conservatism in responding to uncertainties, regulators can develop more informed and effective policies that align with the dynamic nature of business environments.Originality/valueThis research provides novel and original ideas suggesting that the change in accounting conservatism is contingent upon the firms’ ambiguity or risk.

FAKTOR – FAKTOR YANG MEMPENGARUHI KONSERVATISME AKUNTANSI DENGAN LEVERAGE SEBAGAI MODERASI

This study aims to observe the effect of institutional ownership, company size, and conflict of interest on accounting conservatism in manufacturing industry that was listed in Indonesia Stock Exchange during the research period. The study period starts from January 1, 2018 to December 31, 2020. The research finds that fixed effect model is the best model used in this study. Independent variables which are institutional ownership and conflict of interest were found not affect accounting conservatism significantly. However, this study found that company size had positive and significant effect to the accounting conservatism level. Leverage as a moderating variable was found not able to moderateeach independent variables on accounting conservatism.

Accounting Conservatism: Gender Diversity Accounting Conservatism: Gender Diversity and Educational Background on the Board of and Educational Background on the Board of Directors and Commissioner

This research aimed to analyze the effect of the board director’s characteristics and the board of commissioners toward accounting conservatism. The characteristics analyzed in this research were size, gender, and educational background that affect their behavior in dealing with issues related to accounting principles. This research will be conducted by analyzing all companies listed on the Indonesia Stock Exchange in 2017-2019 using SPSS. Data was analyzed as 112 data using multiple regression analysis. The results show that both size of directors and commissioner’s and women of board director and commissioners affect the accounting conservatism. However, the educational background of board directors and commissioners does not affect accounting conservatism.

The Influence of Managerial Ownership, Institutional Ownership, Investment Opportunity Set, and Capital Intensity on Accounting Conservatism with Political Connections as A Moderation Variable

Purpose : This study investigates how managerial ownership, institutional ownership, investment opportunity sets, and capital intensity affect accounting conservatism moderated by political connections.Method : State-owned companies are the population in this study that went public from 2014 to 2021. A total of 17 companies per year were obtained using purposive sampling (136 units of analysis). Research data were collected using documentation techniques and analyzed using descriptive and inferential statistical analysis techniques.Findings : The findings indicate a positive relationship between institutional ownership and accounting conservatism and that high capital intensity can reduce accounting conservatism. Meanwhile, managerial ownership and investment opportunity set does not affect accounting conservatism. We also find that political connections cannot moderate the effect of managerial ownership, institutional ownership, and investment opportunity sets on accounting conservatism. However, political connections weaken the negative effect of capital intensity on accounting conservatism. Novelty : The originality of this study is in a different research model from previous research. The thing that concerns this research is based on the object used, namely BUMN companies. State-Owned Enterprises (BUMN) are the primary channel for the state to carry out its role as an economic actor. However, there are still cases of harmful accounting activities involving SOEs. So this study also emphasizes the existence of political connections, which are suspected to be one of the factors that make it difficult for companies to develop for the better.Keywords : Accounting Conservatism; Managerial Ownership; Institutional Ownership; Investment Opportunity Set; Capital Intensity; Political Connections

The Effect of Firm Size, Profitability and Leverage on Accounting Conservatism

This study aims to determine the effect of Firm Size, Profitability, Leverage on accounting conservatism in property and real estate companies listed on the Indonesia Stock Exchange. This research is a quantitative type because it refers to the calculation of research in the form of numbers. The variables of this study include the dependent and independent variables. The sample in this study is property and real estate companies listed on the Indonesia Stock Exchange (IDX) in the 2017-2021 period. The sample selection used the purpose sampling method, with a total of 13 companies during the 2017-2021 period. The data analysis technique used the Classical Assumption Test, Multiple Linear Regression Analysis and Hypothesis Testing, this analysis was carried out with the help of the Eviews 9.0 software program. This study shows that the variables Firm Size, Profitability, Leverage simultaneously affect accounting conservatism. With a significance level of 0.020246 less than 0.05. and partially profitability has an effect on accounting conservatism, while Firm Size and Leverage have no effect on accounting conservatism

THE INFLUENCE OF FINANCIAL DISTRESS, PROFITABILITY AND LEVERAGE ON ACCOUNTING CONSERVATISM IN MANUFACTURING COMPANIES ON THE INDONESIA STOCK EXCHANGE

This study aims to determine the effect of Financial Distress, Profitability and Leverage on Accounting Conservatism in Manufacturing Companies on the Indonesia Stock Exchange for the 2017-2021 Period. The research method used is quantitative, with secondary data obtained from financial statements on the Indonesia Stock Exchange with a total sample of 58 companies using the purposive sampling technique. The data analysis technique used is descriptive statistical analysis, multiple linear regression analysis, analysis prerequisite test, classical assumption test and hypothesis testing. The results show that financial distress and leverage significantly negatively affect accounting conservatism, while profitability does not. The coefficient of determination in this study is 11.2% which offers the ability of financial distress, profitability and leverage to explain its impact on accounting conservatism. In contrast, the rest is explained by other variables

Faktor-Faktor yang Mempengaruhi Integritas Laporan Keuangan pada Perusahaan Manufaktur

This study aims to empirically examine the effect of financial distress, leverage, profitability, and firm size on accounting conservatism principles in manufacturing companies in Indonesia. The sample used in this study was selected using the purposive sampling method and 90 manufacturing companies listed on the IDX were selected during the period 2017 to 2019 with a total of 250 observations. This research was conducted using multiple regression analysis with Random Effect Model (REM) as the regression model. The data in this study were processed using the Econometric Views (EViews) software version 12. The results of the study found that financial distress, leverage, profitability, and firm size affect accounting conservatism. More specifically, financial distress and firm size have a non-significant positive effect on accounting conservatism, while leverage and profitability have a significant negative effect on accounting conservatism.

Corporate governance dan accounting conservatism di Industri Perbankan Indonesia

Bank managers are very important in implementing the governance of a bank. Implementing governance will affect accounting conservatism. Tujaun of this research is to evaluate the corporate governance factors that affect the level of accounting conservatism in the bank's financial statements exposed on the Indonesia stock exchange. The sample used were 25 big banks. This research uses multiple regesi analysis tools. The results of the research are managerial ownership, institutional ownership, audit committees and self assessment of good corporate governance affecting accounting conservatism. The independent board of commissioners has no effect on accounting conservatism. To increase the conservatism of accounting factors managerial ownership becomes an important factor in corporate governance.

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

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.

Pengaruh Insentif Pajak, Financial Distress, dan Capital Intensity Terhadap Konservatisme Akuntansi

Companies that carry out conservatism in financial statements there are various factors, researchers suggest these factors, there are tax incentives, financial distress, and capital intensity. Research objectives are find out whether tax incentives, financial distress and capital intensity have an effect on accounting conservatism. Based on Sugiyono (2017:2), the research method is a scientific way to obtain data with certain goals and uses. Based on those research method, there are five keywords that need to be considered, scientific method, data, objectives, and uses. The type of research used by this research is quantitative research. This research was conducted by 14 food and beverage companies. In this study using secondary data. Based on the results of research, tax incentives and financial distress have a negative effect on accounting conservatism. Meanwhile, capital intensity does not affect accounting conservatism. Based on the conclusions and limitations of the research, some suggestions can provide positive benefits for increasing the research sample by using all types of companies listed on the Indonesia Stock Exchange so that they are not limited to food and beverage sub-sector companies

PENGARUH FINANCIAL DISTRESS DAN LEVERAGE TERHADAP KONSERVATISME AKUNTANSI PADA MASA PANDEMI COVID-19 (STUDI EMPIRIS PADA PERUSAHAAN JASA SUB SEKTOR RESTORAN, HOTEL, DAN PARIWISATA YANG TERDAFTAR DI BURSA EFEK INDONESIA)

The purpose of this study is to analyze the impact of financial distress and leverage on the conservatism of accounting. Samples of this survey are Hotels, Restaurants and Tourism sub-sectors listed on the Indonesian Stock Exchange during the covid-19 period.Using a purposive sampling method, the sample for this study comprised a sample of 32 hotels, restaurants, and tourism subsectors. The explanatory variables used in this study were accounting conservatism, financial distress, leverage, and profitability as control variables. In this study, we test using the Statistical Product and Service Solution (SPSS) analytical tools and data. The analysis in this study uses multiple linear regression analysis. The results of this study show that financial distress does not affect accounting conservatism and leverage does not affect accounting conservatism. Variables of the combination of financial distress and leverage have a significant impact on accounting conservatism.

Pengaruh Konflik Kepentingan, Kualitas Audit, Leverage, dan Profitabilitas terhadap Konservatisme Akuntansi

Accounting conservatism is a prudential principle by accountants in preparing financial statements. This is need to be implemented by the company for prevention from management's opportunistic behavior. Phenomena recognition of receivables as income by PT Garuda Indonesia, resulting in overstated profits are the case regarding accounting conservatism. Hasty to recognize receivables as revenue will raise the risk of uncollectible accounts and cause losses. Management's opportunistic can be reduced by applying accounting conservatism. The principle of conservatism is historically still relevant and can avoid the risks that may occur. The aims of this research are to examine the effect of conflict interest, audit quality, leverage and profitability to accounting conservatism. The populations in this study are companies in Kompas100 index listed on IDX within period 2018-2020. This is quantitative research with a purposive sampling technique. The analysis technique used in this study is panel data regression analysis through the Eviews 10. Hypothesis of this study is conflict of interest, audit quality, leverage, and profitability simultaneously affect accounting conservatism. Partially, conflict of interest, audit quality, and profitability has a significant positive effect on accounting conservatism, leverage has a significant negative effect on accounting conservatism.

Pengaruh Kepemilikan Manajerial, Kepemilikan Publik, Leverage, Firm size, dan Operating Cash Flow Terhadap Konservatisme Akuntansi

This study aims to determine the effect of managerial ownership, public ownership, leverage, firm size, and operating cash flow on accounting conservatism in manufacturing companies on the Indonesia Stock Exchange in 2016-2018 partially and simultaneously. The method in this study uses descriptive quantitative. The population in this study are manufacturing companies in the consumer goods industry sector that have been registered and published financial reports on the Indonesia Stock Exchange (IDX) in 2016-2018. The research population is 47 companies. The sample in the study was 21 companies with a sampling technique using purposive sampling technique. The data used is secondary data from the official website www.idx.com. The data analysis method used descriptive statistical tests and classical assumption tests, while the hypothesis testing used multiple regression analysis, F test, t test, and coefficient of determination test. The results showed that the five independent variables used by managerial ownership, public ownership, leverage, firm size, and operating cash flow simultaneously affect accounting conservatism. Based on the partial test, managerial ownership has no significant effect on accounting conservatism, while the other four variables, namely public ownership, leverage, firm size, and operating cash flow, have a significant effect on accounting conservatism. The five independent variables used are managerial ownership, public ownership, leverage, firm size, and operating cash flow simultaneously have an effect on accounting conservatism.