The Influence of Corporate Ownership Structure and Board Members’ Skills on the Accounting Conservatism: Evidence from Non-Financial Listed Firms in Amman Stock Exchange

Abstract

The purpose of the current study is to examine the influence of ownership structure and board members' skills in the practice of accounting conservatism of Jordanian listed firms. The data were obtained from the annual reports of 116 Jordanian listed firms for year 2011. By using the multiple regression analysis, the results show that the influence of corporate ownership structure and board skills on accounting conservatism were somewhat varied. All variables were a positive relationship with the conservatism with the exception of the board multiple ISSN 2162-3082 2014 www.macrothink.org/ijafr 178 directorship which has negative relationship with conservatism. Five hypotheses were developed and offered in this paper, institutional ownership and board financial expertise were supported, while family ownership, board tenure and board multiple directorships were not supported due to the higher level of P-value compared to 0.05. These results refer that corporate governance plays a vital role in enhancing the level of conservatism and reducing the agency conflict. Further, regulators bodies in Jordan should increase the effectiveness role of corporate governance in Jordanian companies in order to enhance the quality of financial reports. In addition, this study opens up avenues for more studies on accounting conservatism not only in Jordan, but also in other countries where this area of study is lacking. International Journal of Accounting and Financial Reporting

The Roles of Capital Intensity in Moderating Managerial Ownership and Investment Opportunity Set (IOS) on Accounting Conservatism

“…The finding indicates that accounting conservatism is positively influenced by managerial ownership. The result is supported by research conducted by Dwitayanti & Fahlefi (2015); Pratanda & Kusmuriyanto (2014); Al-Sraheen et al (2014); Septian & Anna (2014); and Dewi & Suryanawa (2014). On the other hand, Sinambela & Almilia (2018) and Yuliarti & Yanto (2017) proved the absence of the effect of managerial ownership on accounting conservatism.…”

Pengaruh Ukuran Perusahaan, Kepemilikan Institusional, dan Konservatisme Akuntansi pada Tax Avoidance

“…Norma subjektif berkaitan dengan konservatisme akuntansi yang diterapkan dalam suatu perusahaan. Alasan untuk menggunakan konservatisme akuntansi dalam praktik akuntansi adalah untuk menghadapi adanya kesulitan dan ketidakpastian dalam memprediksi manfaat aset dan liabilitas tertentu di masa depan (Sraheen, et al, 2014). Pengakuan aset dan pendapatan baru dilakukan saat aset atau pendapatan tersebut benar-benar telah diterima perusahaan, sedangkan rugi atau biaya yang terjadi harus segera diakui (Alkurdi, et al, 2017).…”

Pengaruh Corporate Governance, Investment Opportunity Set, Ukuran Perusahaan, Dan Penerapan Psak 55 Terhadap Konservatisme Akuntansi

“…Jensen dan Meckling (1976) menjelaskan bahwa teori agensi terkait dengan hubungan keagenan sebagai kontrak antara dua pihak yaitu prinsipal dan agen untuk melakukan beberapa kegiatan atas nama prinsipal dalam kapasitasnya sebagai pengambil keputusan. Al-Sraheen et al (2014) berpendapat bahwa masalah keagenan muncul karena adanya pertentangan kepentingan diantara pemegang saham dan manajemen perusahaan. Teori keagenan dalam penelitian ini digunakan untuk menjelaskan penerapan konservatisme akuntansi yang dilihat dari laporan keuangan perusahaan untuk mengatasi masalah keagenan.…”

“…Rendahnya kepemilikan institusional mengindikasikan bahwa aktivitas monitoring terhadap kinerja manajemen belum berjalan secara optimal. Hasil penelitian ini bertolak belakang dengan hasil temuan Al-Sraheen et al (2014) serta Alkurdi et al (2017) yang menemukan adanya pegaruh positif antara kepemilikan institusional terhadap konservatisme akuntansi.…”