The Impact of Company Size, Capital Intensity, Litigation Risk and Managerial Ownership on Accounting Conservatism

Laura Hartanto, M. Devitia Putri Nilamsari

Abstract


Accounting conservatism is a cautious reaction to dealing with uncertain matters in the Company. This research aims to determine the influence of company size, capital intensity, litigation risk, and managerial ownership on accounting conservatism. This research is quantitative descriptive research that uses multiple linear regression analysis. The population in this study is manufacturing companies registered on the BEI in 2020-2022, and the sampling method used in this research is purposive sampling, where it is known that the research sample is 94 companies registered on the BEI. The research results show that the variables of company size, litigation risk, and managerial ownership have a positive and significant effect on accounting conservatism. Meanwhile, the capital intensity variable has an insignificant positive effect on accounting conservatism. Investors, potential investors and creditors are advised to be more careful with the information presented in financial reports and to be able to pay attention to published annual financial reports to determine the quality of company profits when making decisions. Referring to the low value of the coefficient of determination, it is hoped that further research can add variables or use other variables outside the model

Keywords


Capital Intensity; Managerial Ownership; Litigation Risk; Company Size

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References


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DOI: http://dx.doi.org/10.26623/ebsj.v8i2.10561

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