Accounting Conservatism Research Articles

The relationship between investment and accounting conservatism: a study applied to small and medium-sized Portuguese companies

Conservatism has been present in accounting practice for a long time. Currently, the dichotomy between historical cost and fair value or between the qualitative characteristic of relevance and reliability motivate further research. Thus, in this paper we analyse whether the level of investment affects conditional conservatism in Portuguese small and medium-sized entities over the period from 2014 to 2018. The study was based on the econometric model proposed by Basu (1997), modified by Ball and Shivakumar (2005). The results indicate that these firms in general do not opt for conservative accounting practices. However, firms that report investment activities tend to be more conservative aiming at capturing investors’ confidence. Furthermore, the empirical evidence does not allow us to conclude that extreme levels of investment significantly affect conservatism. This study contributes to the debate on the relevance of conservative accounting practice at the level of investment decisions.

Nilai Perusahaan, Kinerja Lingkungan dan Konservatisme Akuntansi

Purpose: This study aims to examine and prove the influence between environmental performance and accounting conservatism on company value in manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2016-2020 period. Methodology: Manufacturing Companies listed on the Indonesia Stock Exchange became the population in this study. Purposive sampling was used to determine samples and obtained as many as 50 companies that met the criteria. Multiple linear regression analysis tests the model and proves the proposed hypothesis. Data is processed with the help of Statistic tools. Results: The test result is that environmental performance can affect the value of the company and accounting conservatism cannot be proven to affect the value of the company Limitations: The limitations in this study prove that accounting conservatism variables measured by earnings / Accrual measure have no influence on company value, subsequent research can use other measurements for accounting conservatism so that it can prove its effect Contribution: The results of this study can contribute to investors' decision-making to consider aspects of the company's responsibility to the surrounding environment for its operating activities. Keywords: 1. Firm Value 2. Environmental Performance 3. Accounting Conservatism

Effect of Sales Growth, Capital Intensity, and Financial Distress on Accounting Conservatism with Good Corporate Governance as a Moderation Variable

Effect of Sales Growth, Capital Intensity, and Financial Distress on Accounting Conservatism with Good Corporate Governance as a Moderation Variable

The Influence of Corporate Governance, Debt Covenant and Political Cost on Accounting Conservatism

The Influence of Corporate Governance, Debt Covenant and Political Cost on Accounting Conservatism

Effect of Financial Distress, Leverage, Capital Intensity and Operational Complexity on Accounting Conservatism

Effect of Financial Distress, Leverage, Capital Intensity and Operational Complexity on Accounting Conservatism

The Effect of Capital Intensity, Leverage, Company Size, And Litigation Risk on Accounting Conservatism

The Effect of Capital Intensity, Leverage, Company Size, And Litigation Risk on Accounting Conservatism

Reducing Cost of Capital. Do Voluntary Disclosure and Accounting Conservatism Contribute?

Theoretically, accounting conservatism and voluntary disclosure may be used as means to reduce cost of equity. Supportive evidence has been provided by the majority of studies, especially in developed countries. We address this issue by focusing on an underdeveloped country with political instability. The impact of accounting conservatism and voluntary disclosure on cost of capital is estimated using the data belongs to all companies listed on the Palestine Exchange during the period from 2015 to 2019. The results confirm the negative influence of voluntary disclosure and accounting conservatism on cost of capital.

The Influence of Corporate Social Responsibility (CSR) Disclosures, Accounting Conservatism, and Leverage on Earnings Response Coefficient (ERC)

This study aims to examine the effect of Disclosure of Corporate Social Responsibility (CSR), Accounting Conservatism, Leverage, Earnings Response Coefficient (ERC) partially or simultaneously. The research method used is a quantitative research method and uses secondary data, namely manufacturing companies listed on the Indonesia Stock Exchange. The samples used were 34 companies in 2015-2019 whose acquisitions used the purposive sampling method. The analytical method used is multiple linear regression analysis technique. The results of this study, partially, Disclosure of Corporate Social Responsibility (CSR) and Accounting Conservatism affect the Earnings Response Coefficient (ERC). Meanwhile, Leverage has no effect on the Earnings Response Coefficient (ERC). Simultaneously, Disclosure of Corporate Social Responsibility (CSR), Accounting Conservatism, and Leverage affect the Earnings Response Coefficient (ERC).

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 relationship between CSR disclosure and accounting conservatism: The role of state ownership

The literature has explored an association between corporate social responsibility (CSR) disclosure and accounting conservatism. This paper investigates how state ownership moderates this relationship in the context of the emerging Russian economy. Using a sample of 223 publicly listed Russian companies for the period of 2012–2017, we find that companies with higher CSR disclosure tend to have more conservative financial reporting practices. We observe, however, that state ownership has a negative moderating effect on this association, in line with agency theory. Moreover, we explore the unique structure of Russian companies’ state ownership, whereby public companies often have a combination of federal, regional, and municipal state ownership, the outcome of privatization reform. We find that federal state ownership alone or in combination with regional or municipal levels of state ownership has a significantly negative impact on the CSR disclosure–accounting conservatism association. We find no evidence that a regional or municipal level of state ownership, a combination of regional and municipal levels of state ownership, or a combination of all three levels has an impact on the association between CSR disclosure and reporting conservatism. We address the recent call for a contextualized approach that focuses on institutional, legal, and cultural features of different economies to advance our knowledge of the antecedents of CSR disclosure, its association with reporting quality, and the factors that moderate it.

The Effect of Managerial Ownership, Debt Angreements and Litigation Risk on Accounting Conservatism

The purpose of this study was to examine the effect of managerial ownership, debt covenants, financial distress and litigation risk on accounting conservatism. The population in this study consists of manufacturing companies, and consumer goods industry sub-sectors listed on the Indonesia Stock Exchange in 2015-2018. A sample of 12 companies used in this study was determined by the purposive sampling method. The data used is secondary data. Data analysis was carried out with descriptive statistics using panel data regression analysis techniques.
 The empirical results of this study indicate that independent debt covenants do not have a statistically significant effect on accounting conservatism, while managerial ownership and litigation risk have a negative significant effect on accounting conservatism. The results show that managerial ownership has a significant positive effect on accounting conservatism and litigation risk. significant positive effect on Accounting Conservatism, debt covenants do not have a significant effect on Accounting Conservatism, and managerial ownership, and litigation risk, together have an effect on Accounting Conservatism.

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

Pengaruh spesialisasi auditor, maturitas utang, konservatisme Akuntansi, dan kualitas laporan keuangan terhadap efisiensi investasi

This study aims to determine the effect of auditor specialization variables, debt maturity, accounting conservatism, and the quality of financial reports on investment efficiency practices in property and real estate sector companies. The investment efficiency measurement model is measured by growth opportunity measurements. This type of research is quantitative, using secondary data in the form of annual reports from property and real estate companies listed on the Indonesia Stock Exchange. The results of this study indicate that the variables of auditor specialization and accounting conservatism have a positive and significant effect on investment efficiency, while the financial report quality variable has a positive but insignificant effect on investment efficiency. In addition, the debt maturity variable has a negative and insignificant effect on investment efficiency for property and real estate companies listed on the Indonesia Stock Exchange.

FAKTOR YANG MEMPENGARUHI CONSERVATISM ACCOUNTING DI INDUSTRI BARANG KONSUMSI

The research aim to determine the effect of Leverage, Capital Intensity, Growth Opportunities, Firm Size, and Board of Commissioners on Conservatism Accounting in manufacturing company consumer goods industry listed on the Indonesia Stock Exchange in 2017-2019. This research uses a purposive sampling technique. There are 28 companies that have passed the criteria. Data processing techniques using multiple regression analysis by using IBM SPSS Statistics 22 and Microsoft Excel 2016 . The result in this research indicate that Leverage, Growth Opportunities, and Board of Commissioners has not significant negative effect on Conservatism Accounting, while Firm Size has positive and not significant effect on Conservatism Accounting. Only Capital Intensity have a significant positive effect on Conservatism Accounting.

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

The Influence Of Managerial Ownership, Company SizeAnd Leverage of Conservatism Accounting With Profitability As A Moderating Variable In Manufacturing Companies

The Influence Of Managerial Ownership, Company SizeAnd Leverage of Conservatism Accounting With Profitability As A Moderating Variable In Manufacturing Companies

Tax-Cut Policies, Accounting Conservatism, and Corporate Tax Burden Stickiness: Empirical Analysis from China

This study explores the relationship between tax-cut policy, accounting conservatism, and corporate tax burden stickiness in Chinese listed companies from 2008 to 2019. The primary objective is to identify the underlying reasons for continued high levels of corporate tax burdens despite the introduction of tax-cut policies. An econometric model was developed to analyze the transmission mechanism of these policies affecting corporate tax burden stickiness to achieve this goal. The tax burden stickiness refers to the mismatch between the objective and subjective tax burdens. Results reveal four primary findings: Firstly, macro tax-cut policies induced micro-enterprises to soften their accounting conservatism, leading to increased corporate tax burden stickiness. Secondly, the reduced quality of corporate accounting reports, influenced by tax-cut policies, contributes to corporate income tax burden stickiness. In contrast, the VAT tax burden remains unaffected. Thirdly, compared to state-owned enterprises, private enterprises responded more sensitively to tax reduction policies by significantly decreasing their accounting conservatism level and increasing corporate tax burden stickiness. Finally, high-tech manufacturing enterprises recorded the highest increase in corporate tax burden stickiness, suggesting that different robust accounting policies exist across various industries and may be critical factors determining corporate tax burden stickiness. In practical terms, this study provides important insights into improving businesses’ understanding of tax burden patterns, enabling improved resource allocation of taxes accordingly. Additionally, it focuses on enhancing accounting conservatism to alleviate the pain of high tax burdens on such businesses. Ultimately, minimizing the stickiness of tax burdens will allow fiscal and taxation policies to better flex their regulatory muscles toward achieving effective and stable economic growth.

Pay Gap and Accounting Conservatism

This paper investigates the impact of the pay gap on accounting conservatism based on the basic data of A-share listed companies in Shanghai and Shenzhen from 2008 to 2020 by using multivariate linear regression model and OLS regression method, finding that the two are significantly negatively correlated. By introducing Confucian culture, this paper further explores the moderating role of Confucianism and finds that enterprises influenced by Confucian culture emphasize collectivism, which also increases the accounting conservatism. This paper expands the research of accounting conservatism and explains the relationship between the pay gap and accounting conservatism from the perspective of corporate governance and Confucian culture, encouraging companies to strengthen cultural construction and absorb the essence of Chinese traditional culture.

Reshaping gender quotas in the boardroom: women's participation and accounting conservatism in Indonesia

In Indonesia, a woman's role is often referred to as a wife, a mother, and a housewife instead of a career position. Thus, women's participation in the boardroom is low. The board gender diversity exhibits advantages such as providing good financial reporting quality. Therefore, this study examines accounting conservatism as a good financial reporting quality and explores the association between women's participation, firm-specific controls, and accounting conservatism in Indonesian manufacturing companies. The study finds that Indonesian manufacturing companies are not conservative in financial reporting. The result demonstrates that hiring more women in the boardroom can enhance accounting conservatism. Hence, reshaping gender quotas - to include more women in the boardroom should be imposed. The result also highlights that in the absence of the conservatism principle, risk disclosure can be a substitute for conservatism, especially in the case of firms' higher profits.

ACCOUNTING CONSERVATISM AND CORPORATE TAX AVOIDANCE

This study investigates the effect of accounting conservatism on the corporate tax avoidance of listed non-financial firms in Nigeria. This study computes corporate tax avoidance based on the cash effective tax rate (CETR), GAAP effective tax rate (GETR) and book tax difference (BTD). Accounting conservatism was measured using negative accruals. The study employed an ex-post factor research design utilizing unbalanced panel data. The study covered 48 listed non-financial firms during the period between 2014 and 2020. Three regression models were developed and utilized in the study. The study has revealed that accounting conservatism has a negative and significant effect on both the GETR and BTD. It is recommended that the Financial Reporting Council of Nigeria should encourage promulgation of standards which improve conservatism in financial reporting, as it has been empirically proven to reduce tax avoidance practices by non-financial firms in Nigeria.