Research Article
Effect of Company Size, Profitability, Audit Quality, and Accounting Conservatism on Corporate Financial Performance
@INPROCEEDINGS{10.4108/eai.4-11-2022.2328922, author={Nawang Kalbuana and Muhamad Taqi and Lia Uzliawati and Dadan Ramdhani}, title={Effect of Company Size, Profitability, Audit Quality, and Accounting Conservatism on Corporate Financial Performance}, proceedings={Proceedings of the International Conference on Sustainability in Technological, Environmental, Law, Management, Social and Economic Matters, ICOSTELM 2022, 4-5 November 2022, Bandar Lampung, Indonesia}, publisher={EAI}, proceedings_a={ICOSTELM}, year={2023}, month={9}, keywords={agency theory corporate financial performance company size profitability audit quality accounting conservatism}, doi={10.4108/eai.4-11-2022.2328922} }- Nawang Kalbuana
Muhamad Taqi
Lia Uzliawati
Dadan Ramdhani
Year: 2023
Effect of Company Size, Profitability, Audit Quality, and Accounting Conservatism on Corporate Financial Performance
ICOSTELM
EAI
DOI: 10.4108/eai.4-11-2022.2328922
Abstract
This study aims to illustrate that agency theory offers a coherent explanation for the role of the influence of company size, profitability, audit quality, and accounting conservatism on corporate financial performance. This will be accomplished by proving the consistency of agency theory as a solution. In this study, a quantitative technique is used, the population of research samples consists of firms in the transportation industry that were listed on the Indonesia stock exchange in 2017-2021. Using Stata, the panel data in this research were analyzed using ordinary least squares regression with fixed effect, random effect, and robustness. The results of this research show that company size and profitability have a positive effect on corporate financial performance while audit quality negatively affects the company's financial performance, but accounting conservatism does not affect corporate financial performance.