Research Article
The Effect of Managerial Ownership, Covenant Debt and Litigation Risk on Accounting Conservatism
@INPROCEEDINGS{10.4108/eai.15-9-2021.2315202, author={Dirvi Surya Abbas and Tubagus Ismail and Muhamad Taqi and Helmi Yazid}, title={The Effect of Managerial Ownership, Covenant Debt and Litigation Risk on Accounting Conservatism}, proceedings={Proceedings of the Third International Conference Administration Science, ICAS 2021, September 15 2021, Bandung, Indonesia}, publisher={EAI}, proceedings_a={ICAS}, year={2022}, month={1}, keywords={managerial ownership debt covenant litigation risk accounting conservatism}, doi={10.4108/eai.15-9-2021.2315202} }- Dirvi Surya Abbas
Tubagus Ismail
Muhamad Taqi
Helmi Yazid
Year: 2022
The Effect of Managerial Ownership, Covenant Debt and Litigation Risk on Accounting Conservatism
ICAS
EAI
DOI: 10.4108/eai.15-9-2021.2315202
Abstract
The purpose of this study was to examine the effect of Managerial ownership, Debt Covenant and Litigation Risk on Accounting Conservatism. The population in this study consists of 12 manufacturing companies, the consumer goods industry sub-sector listed on the Indonesia Stock Exchange in 2015-2018. Forty-eight data sample companies used in this study was determined by the purposive sampling method. The data used are secondary. Data analysis was performed with panel data regression analysis techniques. The results show that managerial ownership and litigation risk has a significant positive effect on accounting conservatism. Still, different debt covenants result does not have a significant impact on accounting conservatism. Debt agreements that have no effect in the results of this study indicate that it does not affect management to be conservative in its financial reporting. However, as we all know, the debt agreement should motivate the management to improve its financial reporting further. If not, the management will be subject to sanctions from the agreement. Of course, this is a finding that is expected to contribute to economic knowledge, especially in accounting and finance.
