Examining the Factors Affecting Accounting Prudence

Abstract

This study examines the effect of managerial ownership, firm size, leverage, and growth opportunities on accounting prudence. This type of research includes causal research using quantitative methods. The population in this study were all mining companies listed on the BEI, as many as 28 companies. The sample in this study was determined by purposive sampling, so the full selection was 50 data from 10 financial statements of mining companies for five years. Secondary data was collected through the Indonesia Stock Exchange website and analyzed using Multiple Regression Analysis with the Ordinary Least Square model using the Eviews Version 12 software. The results found that managerial ownership positively and significantly affected accounting prudence. Meanwhile, firm size and leverage have no significant positive effect on accounting prudence. Meanwhile, the growth opportunities variable has a negative and significant impact on accounting prudence. The suggestions given by the author for further research are expected to consider other factors outside of this research that can affect accounting prudence such as litigation risk, taxes, and public ownership and can expand objects to other sectors and extend the research period to provide better results and more accurate.

Effect of Board of Commissioners Size, Company Size, Growth Opportunity, and Profitability Against Prudence Accounting

“…(Usbah & Primasari, 2020) state that growth opportunity has a significant positive effect on prudence. Similar research by Idrus et al (2022) states that growth opportunity has a negative and significant effect on prudence.…”

“…This has made management more careful in managing and reporting finances. Research results by Idrus et al (2022) stated that growth opportunities have a negative effect on prudence. Similar studies by Ali et al (2023) and Usbah & Primasari (2020) suggest a growth opportunity effect on prudence.…”

Analysis Of Factors Influencing Accounting Prudence (Empirical Study On State-Owned Enterprises Listed On The Indonesia Stock Exchange For The Period 2018-2022)

“…In this context, prudence can help maximize certainty regarding the value of the company's assets and liabilities. Research conducted by Idrus et al (2022) shows that managerial ownership affects accounting prudence in financial reporting. Fatimah et al (2022) also generally prove that high managerial ownership impacts higher conservatism.…”

“…Research conducted by Idrus et al (2022) shows that managerial ownership affects accounting prudence in financial reporting. Fatimah et al (2022) also generally prove that high managerial ownership impacts higher conservatism. However, Sari and Agustina (2021) found the opposite, that higher managerial ownership results in less conservatism, possibly due to the occurrence of expropriation behavior, where managers use their authority for personal gain.…”

Peran Litigation Risk Dalam Memoderasi Pengaruh Life Cycle Dan Legal Expertise Terhadap Prudence Akuntansi

“…Kata kunci : Legal Expertise; Life Cycle; Litigation Risk; Prudence Akuntansi PENDAHULUAN Dunia usaha yang sekarang ini berkembang pesat mendorong manajemen perusahaan untuk menggunakan beragam metode agar dapat bersaing dengan perusahaan lain, seperti memilih metode-metode dalam menyajikan laporan keuangan perusahaan. Manajemen mempunyai tanggung jawab dalam penyusunan laporan keuangan untuk disampaikan kepada pihak berkepentingan (Idrus et al, 2021). Laporan keuangan diartikan sebagai bagian dari proses pelaporan keuangan yang mengungkap informasi terkait kondisi keuangan, kinerja keuangan, dan fleksibilitas keuangan suatu entitas.…”