The Effect of Financial Distress, Firm Size, Leverage and Litigation Risk on The Application of Accounting Conservatism In Manufacturing Companies Listed In Indonesia Stock Exchange

2021 ◽  
Vol 6 (2) ◽  
pp. 100-106
Author(s):  
Ira Septriana ◽  
Hermawan Triyono ◽  
Agung Prajanto

This research aims to analyze the effect of financial distress, firm size, leverage, and litigation risk on implementing the accounting conservatism of manufacturing companies in Indonesia. The population in this research is manufacturing companies listed on the Indonesia Stock Exchanged (IDX) over 2014-2018. Research sample selection used the purposive sampling method. Obtained company data that meet the research criteria as many as 169 companies, so that the total research data is 149 data. The analysis methods in this research are multiple regression analysis. Based on the test results of the research conclude that variables of the board of financial distress, firm size, and litigation risk have no effect on accounting conservatism implemented of manufacturing companies. Meanwhile, the variable of leverage affects the accounting conservatism's implemented by manufacturing companies.  Keywords: Conservatism Accounting. Financial Distress, Firm Size, Leverage, Litigation Risk 

Jurnal Ecogen ◽  
2019 ◽  
Vol 2 (3) ◽  
pp. 453
Author(s):  
Yola Amanda ◽  
Abel Tasman

Financial distress is the stage of decreasing the company's financial condition that occurs before the company goes bankrupt. This research is conducted to see the effect of liquidity, leverage, sales growth and company size on financial distress of manufacturing companies listed on the Indonesia Stock Exchange. The population in this study are all Manufacturing Companies listed on the Indonesia Stock Exchange for the period 2015-2017. The sample selection is determined by purposive sampling. This research uses logistic regression as the data analysis technique. The results of the this research state that (1) liquidity has a negative and no significant effect on financial distress of manufacturing companies, (2) leverage has a positive and significant effect on  financial distress of manufacturing companies, (3) sales growth has a negative and significant effect on the financial distress of manufacturing companies, (4) company size has a negative and no significant effect on financial distress of manufacturing companies. The suggestion of this research are, (1) for the next researcher, it is recommended to be able to add the period of research and to use other indicators related to the factors that influence financial distress. (2) for the management, it is better to be aware of the company's financial condition. (3) for investors and creditors to be able to seek information in advance about the company's financial condition before deciding to invest and provide loans to a company.Keywords: financial distress, likuiditas, leverage, sales growth, firm size


2021 ◽  
Vol 9 (1) ◽  
pp. 46
Author(s):  
Suci Kurnia Putri ◽  
Wira Lestari ◽  
Riski Hernando

The purpose of this study is to examine the effect of leverage, growth opportunity, firm size and capital intensity on accounting conservatism in the banking sector listed on the Indonesia Stock Exchange (IDX) both simultaneously and partially. The banking sector listed on the Indonesia Stock Exchange (IDX) was selected for the population in this study. The sample selection was carried out using purposive sampling technique and obtained 28 companies with a research period of four years of observation (2016-2019). Meanwhile, the data analysis in this study used multiple regression analysis methods using the SPSS version 22 for windows software application. The results of research conducted in this research indicate that the variable leverage, growth opportunity, firm size and capital intensity simultaneously affect accounting conservatism and firm size variables affect accounting conservatism partially. Meanwhile, other variables such as: leverage, growth opportunity, capital intensity show no effect on accounting conservatism partially. Keywords: Accounting Conservatism; Leverage; Growth Opportunity; Firm Size; Capital Intensity


Author(s):  
Warsani Purnama Sari

This study aims to examine and analyze the effect of financial distress and growth opportunities on accounting conservatism with litigation risk as a moderating variable. The population in this study were 147 manufacturing companies listed on the Indonesia Stock Exchange for the period 2015-2017, with a purposive sampling technique so that 102 samples were obtained. The method of data analysis uses multiple linear regression analysis and interaction testing with the help of the Eviews application program. The results showed that financial distress and growth opportunities partially had a positive and significant effect on accounting conservatism. Litigation risk as a moderating variable strengthens the effect of litigation risk on accounting conservatism, and litigation risk weakens the effect of growth opportunities on accounting conservatism on Manufacturing companies listed on the Indonesia Stock Exchange for the period 2015-2017.


Author(s):  
Malikhatun Dayyanah ◽  
Dhini Suryandari

The aim of this research is to examine the effect of leverage, interest conflict, and litigation risk on accounting conservatism with financial distress as the moderating variable. The population in this research is all manufacturing companies listed in the Indonesia Stock Exchange (IDX) during the years 2015 to 2017 which consists of 155 companies. The sample selection used purposive sampling method, there are 30 companies as research sample and 90 units of analysis. Out of this amount, there are 21 units of analysis which are outlier data, so totally there are 69 units of analysis. Analysis of research data used are descriptive statistics and inferential statistics which are processed with IBM SPSS Statistics 23 software. The results show that leverage and litigation risk have significant positive effect on accounting conservatism. While interest conflict has no affection on accounting conservatism. Financial distress is able to moderate the influence of interest conflict on accounting conservatism, but it is not able to moderate the influence of leverage and risk of litigation on accounting conservatism.


2020 ◽  
Vol 32 (02) ◽  
pp. 32-51
Author(s):  
Darmanto ◽  
Karlina Hogiana Suprihadi Putri

This study aims to examine whether Financial Distress, Growth Opportunities, Litigation Risk and Political Cost Against Accounting Conservatism in Manufacturing Companies on the Stock Exchange in 2016-2018. Population  used in this study is manufacturing companies listed on the Indonesia Stock Exchange. The samples used were 75 companies per year with a sampling technique using purposive sampling method. The data used in the form of the company's annual financial statements obtained from www.idx.co.id. Data analysis techniques were performed using multiple regression analysis with the help of SPSS version 16.0 Data analysis of this study uses multiple linear regression which results that the risk of litigation has a positive and significant effect on accounting conservatism, while financial distress, growth opportunities, and political cost do not significantly influence accounting conservatism. This study also shows that the independent variables influence the dependent variable together. Adjusted R2 test results mean that the independent variable affects the dependent variable of accounting conservatism by 35.5%, and the remaining 64.5% is influenced by other factors not tested in this study.


2012 ◽  
Vol 8 (2) ◽  
Author(s):  
Lia Alfiah Dinanar Hati

This paper examine several factor that impact to accounting conservatism practice. Conservatism is commonly defined as the differential verifiability required for recognition of profits versus losses. Regardless of the different opinion about role of accounting conservatism, in fact, this principle is still in uses until now and be one of the dominant principle in accounting. Through this article the author do review of several previous studies about accounting conservatism at Indonesia and other country. From several review we conclude that accounting conservatism is affected by factors of contracting, litigation risk, political costs, regulations, financial distress and conflict of interest between shareholders and bondholders.


2017 ◽  
Vol 6 (1) ◽  
pp. 67
Author(s):  
Habiba Habiba

Accounting conservatism is a condition where a company acknowledges the debts and costs more quickly, but on the other hand, the company acknowledges the income and assets more slowly. Some factors that can affect the accounting conservatism are stan-dards changes, corporate governance, and so forth. The purpose of this study is to analyze the effect occurring on the variable of accounting conservatism when using comprehensive income and income for the current year in manufacturing companies listed on the Indonesian Stock Exchange in 2012 and 2013. The variables studied are institutional ownership, managerial ownership, the existence of audit committee, the number of audit committee meetings, and leverage. The statistical method used in this study is multiple regression analysis. The results of this study indicate that institu-tional ownership, managerial ownership, and the number of audit committee meetings do not have significant effect on accounting conservatism when using comprehensive income and income for the current year, but the variables of the existence of audit committee and leverage have significant effect on accounting conservatism when using comprehensive income and income for current the year.


Author(s):  
Ratih Pujirahayu Nugroho ◽  
Sutrisno T Sutrisno ◽  
Endang Mardiati

This study aims to verify the correlation between financial distress and earnings management of tax aggressiveness moderated by corporate governance. This study uses a population of manufacturing companies that publish their financial statement on the Indonesia Stock Exchange from 2017 until 2018. Sample collection was performed using a purposive sampling method, resulting in a total of 212 populations that published complete financial reports. This study was tested by using the Multiple Regression Analysis test. This research gave empirical proofs that financial distress and real earnings management positively influenced the tax aggressiveness was supported, the proportion of independent commissioners weakened the financial distress and negatively impacted the tax aggressiveness was supported, the total audit committees weakened the financial distress and negatively influenced the tax aggressiveness was not supported, the proportion of independent commissioners and total audit committees weakened the real earnings management and negatively affected the tax aggressiveness was not supported


2019 ◽  
Vol 2 (2) ◽  
pp. 52-70
Author(s):  
Aemelia Angesti ◽  
Fernaldy Fernaldy ◽  
Maisarah Maisarah ◽  
Erica Erica ◽  
Desy Anwar ◽  
...  

This study’s main objective is to examine the effect of working capital turnover, return on equity, and firm size toward price book value in the manufacturing companies listed on the Indonesian Stock Exchange in 2013-2016. Working capital turnover is the proxy chosen from activity ratio. Return on equity is the proxy chosen from probability ratio. Firm size is based on total assets, with the nominal itself is in natural logarithms. Sample of research was determined by purposive sampling method to obtain 58 manufacturing companies listed on the Indonesia Stock Exchange (BEI) in the years 2013-2016. This study uses secondary data. Validity test of this study is done with multiple regression analysis and classic assumption test. The results of this study indicates that there is significant influence between the variables Working Capital Turnover, Return on Equity, and Firm Size toward Price Book Value.


2019 ◽  
Vol 9 (1) ◽  
Author(s):  
Husna Anniyati ◽  
Hermanto Hermanto ◽  
Siti Aisyah Hidayati

This study aims to analyze the influence of firm size, financial distress, debt level, and managerial ownership on hedging decisions on manufacturing companies listed on the Indonesia Stock Exchange. This type of research is associative-causality research. The population of this research is all the go pubic manufacturing companies on the Indonesia Stock Exchange, which are 170 companies. The number of samples used was 81 companies, which were taken using a purposive sampling method. Data collection techniques use documentation techniques obtained from the annual financial statements of manufacturing companies. The data analysis technique uses the logistic regression analysis method. The results of data analysis show that: (1) firm size and managerial ownership variables have a positive and significant effect on hedging decisions and (2) financial distress and debt levels have a negative and insignificant effect on hedging decisions.Keywords:hedging, firm size, financial distress, debt level, managerial ownership


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