Abstract: A company's financial statements reflect management's performance in managing company resources entrusted to it. Financial reports must be reported in accordance with the actual conditions of the company. Financial Accounting Standards provide the freedom to choose the accounting method that will be used in preparing financial statements. The flexibility given to management in choosing the accounting method to be used is one of which is applying the principle of accounting conservatism. This study aims to determine the effect of financial distress, growth opportunities, and leverage on accounting conservatism. The population in this study are state-owned companies listed on the Indonesia Stock Exchange for the 2016-2019 study period. The number of samples analyzed are 96 observational samples for 24 companies. The samples are selected using a non-probability sampling method with purposive sampling technique. The analysis technique used is multiple linear regression analysis. The results of this study indicate that financial distress has no effect on accounting conservatism, growth opportunities have no effect on accounting conservatism, and leverage has a positive effect on accounting conservatism.
Keywords: Financial distress, Growth Opportunities, Leverage, Accounting Conservatism.
Title: The Effect of Financial Distress, Growth Opportunities, and Leverage on Accounting Conservatism
Author: I Nyoman Abie Kumala Surya, Henny Triyana Hasibuan
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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