Effect of Managerial Ownership, Audit Committee, Profitability and Leverage on Accounting Conservatism
Abstract views: 389
,
pdf downloads: 473
Keywords:
Managerial Ownership, Audit Committee, Profitability, Leverage, Accounting Conservatism
Abstract
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.
References
Abdalwahab, Mahmod Al-ashwashdeh, and Riham Fathi Alkabbji. 2020. “Impact of External Auditing Quality and Audit Committees on Accounting Conservatism and the Performance of Industrial Firms Listed at the Amman Stock Exchange.” International Journal of Financial Research 11 (4): 556–62. https://doi.org/10.5430/ijfr.v11n4p556.
Abdurrahman, Muhammad Affan, and Wita Juwita Ermawati. 2018. “Pengaruh Leverage , Financial Distress Dan Profitabilitas Terhadap Konservatisme Akuntansi Pada Perusahaan Pertambangan Di Indonesia Tahun 2013-2017 The Effect of Leverage , Financial Distress and Profitability on Accounting Convertism in Mining Companies.” Jurnal Manajemen Dan Organisasi (JMO) 9 (3): 164–73.
Al-Sraheen, Dea’a Al-Deen Omar, Faudziah Hanim Fadzil, and Syed Soffian Bin Syed Ismail. 2014. “Does Corporate Governance Matter? Evidence from Accounting Conservatism Practices among Jordanian Listed Companies.” International Journal of Learning and Development 4 (4): 64–80. https://doi.org/10.5296/ijld.v4i4.6507.
Alves, Sandra. 2020. “Ownership Structure and Accounting Conservatism: Evidence From Portuguese and Spanish Listed Companies.” Academy of Accounting and Financial Studies Journal 24 (6): 1–21.
Andreas, Hans Hananto, Albert Ardeni, and Paskah Ika Nugroho. 2017. “Konservatisme Akuntansi Di Indonesia.” Jurnal Ekonomi Dan Bisnis 20 (1): 1–22. https://doi.org/10.24914/jeb.v20i1.457.
Dewi, Ni Kd Sri Lestari, and I Ketut Suryanawa. 2014. “Earnings Quality in UK Private Firms: Comparative Loss Recognition Timeliness. Journal of Accounting and Economics.” E-Jurnal Akuntansi Universitas Udayana 7 (1): 223–34.
El-haq, Zia Nurhaliza Syefa. 2019. “Pengaruh Kepemilikan Manajerial, Kepemilikan Institusional, Growth Opportunities, Dan Profitabilitas Terhadap Konservatisme Akuntansi.” Jurnal ASET (Akuntansi Riset) 11 (2): 315–28. https://doi.org/10.17509/jaset.v11i2.19940.
Fitriani, Anita, and Eva Theresna Ruchjana. 2020. “Pengaruh Financial Distress Dan Leverage Terhadap Konservatisme Akuntansi Pada Perusahaan Retail Di Indonesia.” Equilibrium: Jurnal Ekonomi Manajemen Akuntansi 16 (2): 82–93.
Free, Clinton, Andrew J. Trotman, and Ken T. Trotman. 2021. “How Audit Committee Chairs Address Information-Processing Barriers.” Accounting Review 96 (1): 147–69. https://doi.org/10.2308/TAR-2018-0379.
Hajawiyah, Ain, Agus Wahyudin, Kiswanto, Sakinah, and Indra Pahala. 2020. “The Effect of Good Corporate Governance Mechanisms on Accounting Conservatism with Leverage as a Moderating Variable.” Cogent Business and Management 7 (1): 1–12. https://doi.org/10.1080/23311975.2020.1779479.
Hamdan, Allam Mohammed Mousa, Talal Al-Hayale, and Emad Mohamed Aboagela. 2012. “The Impact of Audit Committee Characteristics on Earnings Management: Additional Evidence from Jordan.” In European Business Research Conference Proceedings, 1–20. https://doi.org/10.2139/ssrn.2130354.
Hejranijamil, Marziyeh, Afsane Hejranijamil, and Javad Shekarkhah. 2020. “Accounting Conservatism and Uncertainty in Business Environments; Using Financial Data of Listed Companies in the Tehran Stock Exchange.” Asian Journal of Accounting Research 5 (2): 179–94. https://doi.org/10.1108/ajar-04-2020-0027.
Khan, Saif, Hashim Khan, and Faisal Khan. 2019. “Firms Audit Committee and External Auditor Influence on Accounting Conservatism and Firm’s Performance.” International Journal of Management, Accounting and Economics 6 (1): 22–47. http://www.ijmae.com/article_114061.html.
Maharani, Swetlana Kartika, and Farida Titik Kristanti. 2019. “Analisis Faktor-Faktor Yang Memengaruhi Konservatisme Akuntansi.” JASa (Jurnal Akuntansi, Audit Dan Sistem Informasi Akuntansi) 3 (1): 83–94.
Malik, Ahmed Rajab Abdul. 2017. “Investigating the Relationship Between Corporate Governance Principles and Accounting Conservatism for Companies Listed on Saudi Stock Exchange.” European Journal of Accounting Auditing and Finance Research V 55 (9): 10–30.
Mamesah, Melisa, David P.E. Saerang, and Linda Lambey. 2016. “Faktor-Faktor Yang Mempengaruhi Penerapan Konservatisme Akuntansi Pada Perusahaan Asuransi Yang Terdaftar Di Bursa Efek Indonesia, Bursa Malaysia Dan Singapore Stock Exchange Tahun 2010-2014.” Accountability 5 (2): 237–48. https://doi.org/10.32400/ja.14438.5.2.2016.237-248.
Mehrani, Sasan, Mohammad Moradi, and Hoda Eskandar. 2017. “Institutional Ownership Type and Earnings Quality: Evidence from Iran.” Emerging Markets Finance and Trade 53 (1): 54–73. https://doi.org/10.1080/1540496X.2016.1145114.
Mohammed, Nishtiman, Ku Nor Izah Ku Ismail, and Noor Afza Amran. 2019. “Corporate Governance and Accounting Conservatism: The Moderating Role of Family Ownership.” International Business and Accounting Research Journal 3 (2): 119–23. https://doi.org/10.15294/ibarj.v3i2.64.
Permatasari, Devi, and Ahmad Rudi Yulianto. 2020. “The Implementation of Accounting Conservatism Principles.” The Indonesian Journal of Accounting Research 23 (01): 67–86. https://doi.org/10.33312/ijar.455.
Putra, I Gst. B Ngr. P, Pt Ag Mirah Purnama Sari, and Gde Deny Larasdiputra. 2019. “Pengaruh Kepemilikan Institusional Dan Kepemilikan Manajerial Pada Konservatisme Akuntansi.” Wacana Ekonomi (Jurnal Ekonomi, Bisnis Dan Akuntansi) Vol.18 (No.1): 41–51. https://ejournal.warmadewa.ac.id/index.php/wacana_ekonomi.
Qu, Charlotte Tianshu. 2020. “Board Members With Style: The Effect of Audit Committee Members and Their Personal Styles on Financial Reporting Choices.” Journal of Accounting, Auditing and Finance 35 (3): 530–57. https://doi.org/10.1177/0148558X17752804.
Ruch, George W., and Gary Taylor. 2015. “Accounting Conservatism: A Review of the Literature.” Journal of Accounting Literature 34 (February): 17–38. https://doi.org/10.1016/j.acclit.2015.02.001.
Sinambela, Maria Oktavia Elizabeth, and Luciana Spica Almilia. 2018. “Faktor-Faktor Yang Mempengaruhi Konservatisme Akuntansi.” Jurnal Ekonomi Dan Bisnis 21 (2): 289–312. https://doi.org/10.24914/jeb.v21i2.1788.
Solichah, Nur, and Fachrurrozie Fachrurrozie. 2019. “Effect of Managerial Ownership , Leverage , Firm Size and Profitability on Accounting Conservatism.” Accounting Analysis Journal 8 (3): 151–57. https://doi.org/10.15294/aaj.v8i3.27847.
Sugiyono. 2014. “Metode Penelitian Kuantitatif, Kualitatif, Dan Kombinasi (Mixed Methods).” In , 224. Bandung: Alfabeta.
Syifa, Hasby Muhammad, Farida Titik Kristanti, and Vaya Juliana Dillak. 2017. “Financial Distress, Kepemilikan Institusional, Profitabilitas Terhadap Konservatisme Akuntansi.” Jurnal Riset Akuntansi Kontemporer 9 (1): 1–6. https://doi.org/10.23969/jrak.v9i1.361.
Vidyari, Hening, and Shinta Sugiarto. 2018. “The Determinant of Accounting Conservatism on Manufacturing Companies in Indonesia.” Accounting Analysis Journal 7 (1): 1–9. https://doi.org/10.15294/aaj.v7i1.20433.
Wang, Richard Zhe, Ciaran Ó Hogartaigh, and Tony van Zijl. 2011. “A Signaling Theory of Accounting Conservatism.” SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1415305.
Wistawan, I Made Andika Pradnyana, Bambang Subroto, and Abdul Ghofar. 2015. “The Characteristics Board of Directors, Family Ownership and Accounting Conservatism: Evidence from Family Public Firms in Indonesia.” Research Journal of Finance and Accounting 6 (22): 113–21.
Yuliarti, Dita, and Heri Yanto. 2017. “The Effect of Leverage, Firm Size, Managerial Ownership, Size of Board Commissioners and Profitability to Accounting Conservatism.” Accounting Analysis Journal 6 (2): 173–84. https://doi.org/10.15294/aaj.v6i2.16675.
Abdurrahman, Muhammad Affan, and Wita Juwita Ermawati. 2018. “Pengaruh Leverage , Financial Distress Dan Profitabilitas Terhadap Konservatisme Akuntansi Pada Perusahaan Pertambangan Di Indonesia Tahun 2013-2017 The Effect of Leverage , Financial Distress and Profitability on Accounting Convertism in Mining Companies.” Jurnal Manajemen Dan Organisasi (JMO) 9 (3): 164–73.
Al-Sraheen, Dea’a Al-Deen Omar, Faudziah Hanim Fadzil, and Syed Soffian Bin Syed Ismail. 2014. “Does Corporate Governance Matter? Evidence from Accounting Conservatism Practices among Jordanian Listed Companies.” International Journal of Learning and Development 4 (4): 64–80. https://doi.org/10.5296/ijld.v4i4.6507.
Alves, Sandra. 2020. “Ownership Structure and Accounting Conservatism: Evidence From Portuguese and Spanish Listed Companies.” Academy of Accounting and Financial Studies Journal 24 (6): 1–21.
Andreas, Hans Hananto, Albert Ardeni, and Paskah Ika Nugroho. 2017. “Konservatisme Akuntansi Di Indonesia.” Jurnal Ekonomi Dan Bisnis 20 (1): 1–22. https://doi.org/10.24914/jeb.v20i1.457.
Dewi, Ni Kd Sri Lestari, and I Ketut Suryanawa. 2014. “Earnings Quality in UK Private Firms: Comparative Loss Recognition Timeliness. Journal of Accounting and Economics.” E-Jurnal Akuntansi Universitas Udayana 7 (1): 223–34.
El-haq, Zia Nurhaliza Syefa. 2019. “Pengaruh Kepemilikan Manajerial, Kepemilikan Institusional, Growth Opportunities, Dan Profitabilitas Terhadap Konservatisme Akuntansi.” Jurnal ASET (Akuntansi Riset) 11 (2): 315–28. https://doi.org/10.17509/jaset.v11i2.19940.
Fitriani, Anita, and Eva Theresna Ruchjana. 2020. “Pengaruh Financial Distress Dan Leverage Terhadap Konservatisme Akuntansi Pada Perusahaan Retail Di Indonesia.” Equilibrium: Jurnal Ekonomi Manajemen Akuntansi 16 (2): 82–93.
Free, Clinton, Andrew J. Trotman, and Ken T. Trotman. 2021. “How Audit Committee Chairs Address Information-Processing Barriers.” Accounting Review 96 (1): 147–69. https://doi.org/10.2308/TAR-2018-0379.
Hajawiyah, Ain, Agus Wahyudin, Kiswanto, Sakinah, and Indra Pahala. 2020. “The Effect of Good Corporate Governance Mechanisms on Accounting Conservatism with Leverage as a Moderating Variable.” Cogent Business and Management 7 (1): 1–12. https://doi.org/10.1080/23311975.2020.1779479.
Hamdan, Allam Mohammed Mousa, Talal Al-Hayale, and Emad Mohamed Aboagela. 2012. “The Impact of Audit Committee Characteristics on Earnings Management: Additional Evidence from Jordan.” In European Business Research Conference Proceedings, 1–20. https://doi.org/10.2139/ssrn.2130354.
Hejranijamil, Marziyeh, Afsane Hejranijamil, and Javad Shekarkhah. 2020. “Accounting Conservatism and Uncertainty in Business Environments; Using Financial Data of Listed Companies in the Tehran Stock Exchange.” Asian Journal of Accounting Research 5 (2): 179–94. https://doi.org/10.1108/ajar-04-2020-0027.
Khan, Saif, Hashim Khan, and Faisal Khan. 2019. “Firms Audit Committee and External Auditor Influence on Accounting Conservatism and Firm’s Performance.” International Journal of Management, Accounting and Economics 6 (1): 22–47. http://www.ijmae.com/article_114061.html.
Maharani, Swetlana Kartika, and Farida Titik Kristanti. 2019. “Analisis Faktor-Faktor Yang Memengaruhi Konservatisme Akuntansi.” JASa (Jurnal Akuntansi, Audit Dan Sistem Informasi Akuntansi) 3 (1): 83–94.
Malik, Ahmed Rajab Abdul. 2017. “Investigating the Relationship Between Corporate Governance Principles and Accounting Conservatism for Companies Listed on Saudi Stock Exchange.” European Journal of Accounting Auditing and Finance Research V 55 (9): 10–30.
Mamesah, Melisa, David P.E. Saerang, and Linda Lambey. 2016. “Faktor-Faktor Yang Mempengaruhi Penerapan Konservatisme Akuntansi Pada Perusahaan Asuransi Yang Terdaftar Di Bursa Efek Indonesia, Bursa Malaysia Dan Singapore Stock Exchange Tahun 2010-2014.” Accountability 5 (2): 237–48. https://doi.org/10.32400/ja.14438.5.2.2016.237-248.
Mehrani, Sasan, Mohammad Moradi, and Hoda Eskandar. 2017. “Institutional Ownership Type and Earnings Quality: Evidence from Iran.” Emerging Markets Finance and Trade 53 (1): 54–73. https://doi.org/10.1080/1540496X.2016.1145114.
Mohammed, Nishtiman, Ku Nor Izah Ku Ismail, and Noor Afza Amran. 2019. “Corporate Governance and Accounting Conservatism: The Moderating Role of Family Ownership.” International Business and Accounting Research Journal 3 (2): 119–23. https://doi.org/10.15294/ibarj.v3i2.64.
Permatasari, Devi, and Ahmad Rudi Yulianto. 2020. “The Implementation of Accounting Conservatism Principles.” The Indonesian Journal of Accounting Research 23 (01): 67–86. https://doi.org/10.33312/ijar.455.
Putra, I Gst. B Ngr. P, Pt Ag Mirah Purnama Sari, and Gde Deny Larasdiputra. 2019. “Pengaruh Kepemilikan Institusional Dan Kepemilikan Manajerial Pada Konservatisme Akuntansi.” Wacana Ekonomi (Jurnal Ekonomi, Bisnis Dan Akuntansi) Vol.18 (No.1): 41–51. https://ejournal.warmadewa.ac.id/index.php/wacana_ekonomi.
Qu, Charlotte Tianshu. 2020. “Board Members With Style: The Effect of Audit Committee Members and Their Personal Styles on Financial Reporting Choices.” Journal of Accounting, Auditing and Finance 35 (3): 530–57. https://doi.org/10.1177/0148558X17752804.
Ruch, George W., and Gary Taylor. 2015. “Accounting Conservatism: A Review of the Literature.” Journal of Accounting Literature 34 (February): 17–38. https://doi.org/10.1016/j.acclit.2015.02.001.
Sinambela, Maria Oktavia Elizabeth, and Luciana Spica Almilia. 2018. “Faktor-Faktor Yang Mempengaruhi Konservatisme Akuntansi.” Jurnal Ekonomi Dan Bisnis 21 (2): 289–312. https://doi.org/10.24914/jeb.v21i2.1788.
Solichah, Nur, and Fachrurrozie Fachrurrozie. 2019. “Effect of Managerial Ownership , Leverage , Firm Size and Profitability on Accounting Conservatism.” Accounting Analysis Journal 8 (3): 151–57. https://doi.org/10.15294/aaj.v8i3.27847.
Sugiyono. 2014. “Metode Penelitian Kuantitatif, Kualitatif, Dan Kombinasi (Mixed Methods).” In , 224. Bandung: Alfabeta.
Syifa, Hasby Muhammad, Farida Titik Kristanti, and Vaya Juliana Dillak. 2017. “Financial Distress, Kepemilikan Institusional, Profitabilitas Terhadap Konservatisme Akuntansi.” Jurnal Riset Akuntansi Kontemporer 9 (1): 1–6. https://doi.org/10.23969/jrak.v9i1.361.
Vidyari, Hening, and Shinta Sugiarto. 2018. “The Determinant of Accounting Conservatism on Manufacturing Companies in Indonesia.” Accounting Analysis Journal 7 (1): 1–9. https://doi.org/10.15294/aaj.v7i1.20433.
Wang, Richard Zhe, Ciaran Ó Hogartaigh, and Tony van Zijl. 2011. “A Signaling Theory of Accounting Conservatism.” SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1415305.
Wistawan, I Made Andika Pradnyana, Bambang Subroto, and Abdul Ghofar. 2015. “The Characteristics Board of Directors, Family Ownership and Accounting Conservatism: Evidence from Family Public Firms in Indonesia.” Research Journal of Finance and Accounting 6 (22): 113–21.
Yuliarti, Dita, and Heri Yanto. 2017. “The Effect of Leverage, Firm Size, Managerial Ownership, Size of Board Commissioners and Profitability to Accounting Conservatism.” Accounting Analysis Journal 6 (2): 173–84. https://doi.org/10.15294/aaj.v6i2.16675.
Published
2022-03-28
How to Cite
Novi Ayu Arthasari, & Agustina Ratna Dwiati. (2022). Effect of Managerial Ownership, Audit Committee, Profitability and Leverage on Accounting Conservatism. JAE (JURNAL AKUNTANSI DAN EKONOMI), 7(1), 63-72. https://doi.org/10.29407/jae.v7i1.16994
Section
Volume 7 No 1 Tahun 2022
Copyright (c) 2022 Novi Ayu Arthasari, Agustina Ratna Dwiati
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Copyright on any article is retained by the author(s).
- The author grants the journal, right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal’s published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
- The article and any associated published material is distributed under the Creative Commons Attribution-ShareAlike 4.0 International License
