DETERMINANT ANALYSIS IN ACCOUNTING CONSERVATISM

Abstract

This study aims to analyze the effect of managerial ownership structure, growth opportunities, leverage, and financial distress on accounting conservatism in manufacturing companies, especially the various industrial sectors and consumer goods in the Indonesia Stock Exchange for the period 2015-2017. Sampling used purposive sampling to obtain 21 companies. The data analysis technique uses panel data that is processed with Eviews 10. Based on partial tests, variables that have a significant positive effect on accounting conservatism are leverage and financial distress. Conversely, managerial ownership structure and growth opportunities have no significant effect on accounting conservatism. Then, the F test results show there is a simultaneous influence between the variables of managerial ownership structure, growth opportunities, leverage and financial distress on accounting conservatism. The test results for the coefficient of determination of 82.77 percent, which means the ability of the independent variable in explaining accounting conservatism in this study amounted to 82.77 percent, while the remaining 17.23 percent was influenced by other variables not used in this study.

Keywords

• accounting conservatism
• financial distress
• growth opportunities
• leverage
• managerial ownership structure