The First International Conference On Islamic Development Studies 2019, ICIDS 2019, 10 September 2019, Bandar Lampung, Indonesia

Research Article

Good Corporate Governance And Bondholder-Shareholder Conflict: The Case Of Implementation Accounting Conservatism For Mining Company

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  • @INPROCEEDINGS{10.4108/eai.10-9-2019.2289392,
        author={Waluyo Waluyo},
        title={Good Corporate Governance And Bondholder-Shareholder Conflict: The Case Of Implementation Accounting Conservatism For Mining Company},
        proceedings={The First International Conference On Islamic Development Studies 2019, ICIDS 2019, 10 September 2019, Bandar Lampung, Indonesia},
        publisher={EAI},
        proceedings_a={ICIDS},
        year={2019},
        month={11},
        keywords={good corporate governance bondholder-shareholder conflict political cost accounting conservatism},
        doi={10.4108/eai.10-9-2019.2289392}
    }
    
  • Waluyo Waluyo
    Year: 2019
    Good Corporate Governance And Bondholder-Shareholder Conflict: The Case Of Implementation Accounting Conservatism For Mining Company
    ICIDS
    EAI
    DOI: 10.4108/eai.10-9-2019.2289392
Waluyo Waluyo1,*
  • 1: University of Mercu Buana, Jl. Raya Meruya- Jakarta Barat, Indonesia
*Contact email: waluyo@mercubuana.ac.id

Abstract

The application of Accounting Conservatism Principle can lead to different kind of assessment in various companies. Due to the application of this principle, financial statements are no longer considered as obligatory tools to evaluate company's risk. On the contrary, other parties state that the application of the Accounting Conservatism Principle can generate reasonable financial reports and provide relevance in Financial Information. The objective of this study is to analyze the effect of good corporate governance and bondholder-shareholder conflict against company accounting conservatism. The level of accounting conservatism is measured using the value of accruals and the market value. The sample used is a mining company listed on the Indonesia Stock Exchange in 2014-2018. The results of the research show that each company implements accounting conservatism on a different level. In managerial ownership of accrual accounting, the effects of conservatism can be seen in several aspects; it is different from the approach in which the market value of managerial ownership did not affect the significance of accounting conservatism. Institutional ownership does not affect accounting conservatism when measured using accrual approach, but it has the effect on market value when measured. The presence of independent directors and market value when measuring accrual are able to influence the level of accounting conservatism.