PENGARUH FINANCIAL DISTRESS, UKURAN PERUSAHAAN DAN LEVERAGE TERHADAP KONSERVATISME AKUNTANSI

Abstract

Purpose: This study aims to analyze the influence of financial distress, company size, and leverage on accounting conservatism in manufacturing companies listed on the Indonesia Stock Exchange during the period 2018–2021.

Design/Methodology/approach: This study uses a quantitative approach with secondary data sources obtained from the financial statements of manufacturing companies in the sub-sector of basic and chemical industries as well as various industries on the Indonesia Stock Exchange. The sample consists of 32 company data over four years (2018–2021). The analysis techniques used include descriptive analysis, classical assumption tests (normality, autocorrelation, heteroscedasticity, and multicollinearity), and multiple linear regression analysis processed using SPSS 25 software.

Findings: These findings provide an understanding that accounting conservatism in corporate practice is not always influenced by the company's financial condition, size, or funding structure. This can be a consideration for management and investors in evaluating the company's financial reporting practices.

Research Implications: The results show that financial distress, company size, and leverage do not have a significant effect on accounting conservatism, either partially or simultaneously.

Originality / Value: This study contributes to the accounting literature by showing that the variables that are often associated with accounting conservatism do not always have a significant influence, especially in the Indonesian manufacturing sector in this study period.

Keywords: accounting conservatism; financial distress; the size of the company; Leverage