The Role of Financial Distress in Mediating The Accounting Conservatism Practices
Conservatism is a prudent reaction to uncertain conditions aimed at protecting the rights and interests of shareholders, and lenders who determine higher standard verification to recognize good news rather than bad news. Several phenomena that indicate the lack of application of accounting conservat...
| Main Authors: | , |
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| Format: | Article |
| Language: | Indonesian |
| Published: |
Universitas Negeri Surabaya
2022-04-01
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| Series: | Akrual: Jurnal Akuntansi |
| Subjects: | |
| Online Access: | https://journal.unesa.ac.id/index.php/aj/article/view/12523 |
| _version_ | 1811240749060063232 |
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| author | Ratieh Widhiastuti Selvia Rahayu |
| author_facet | Ratieh Widhiastuti Selvia Rahayu |
| author_sort | Ratieh Widhiastuti |
| collection | DOAJ |
| description | Conservatism is a prudent reaction to uncertain conditions aimed at protecting the rights and interests of shareholders, and lenders who determine higher standard verification to recognize good news rather than bad news. Several phenomena that indicate the lack of application of accounting conservatism are the many fraudulent acts of internal company parties. This study aimed to determine the effect of the board of directors, firm size, leverage on accounting conservatism through financial distress as a mediating variable. The population of this research is manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018. The research sample was determined by purposive sampling method so that there were 174 analysis units. The data use published annual reports. The analysis tool used descriptive analysis and path analysis. The results showed that financial distress, firm size, and leverage had a significant positive, but the board of directors had no effect on accounting conservatism. The board of directors and leverage had a significant negative effect on financial distress. Firm size had a significant positive effect on financial distress. Financial distress significantly mediated the effect of firm size and leverage, but was unable to mediate the effect of the board of directors on accounting conservatism |
| first_indexed | 2024-04-12T13:25:46Z |
| format | Article |
| id | doaj.art-061781ddf0ce4f0c846e19bb2a003ee3 |
| institution | Directory Open Access Journal |
| issn | 2085-9643 2502-6380 |
| language | Indonesian |
| last_indexed | 2024-04-12T13:25:46Z |
| publishDate | 2022-04-01 |
| publisher | Universitas Negeri Surabaya |
| record_format | Article |
| series | Akrual: Jurnal Akuntansi |
| spelling | doaj.art-061781ddf0ce4f0c846e19bb2a003ee32022-12-22T03:31:19ZindUniversitas Negeri SurabayaAkrual: Jurnal Akuntansi2085-96432502-63802022-04-0113220121310.26740/jaj.v13n2.p201-2139957The Role of Financial Distress in Mediating The Accounting Conservatism PracticesRatieh Widhiastuti0Selvia Rahayu1Department of Economic Education, Faculty of Economics, Universitas Negeri SemarangDepartment of Economic Education, Faculty of Economics, Universitas Negeri SemarangConservatism is a prudent reaction to uncertain conditions aimed at protecting the rights and interests of shareholders, and lenders who determine higher standard verification to recognize good news rather than bad news. Several phenomena that indicate the lack of application of accounting conservatism are the many fraudulent acts of internal company parties. This study aimed to determine the effect of the board of directors, firm size, leverage on accounting conservatism through financial distress as a mediating variable. The population of this research is manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018. The research sample was determined by purposive sampling method so that there were 174 analysis units. The data use published annual reports. The analysis tool used descriptive analysis and path analysis. The results showed that financial distress, firm size, and leverage had a significant positive, but the board of directors had no effect on accounting conservatism. The board of directors and leverage had a significant negative effect on financial distress. Firm size had a significant positive effect on financial distress. Financial distress significantly mediated the effect of firm size and leverage, but was unable to mediate the effect of the board of directors on accounting conservatismhttps://journal.unesa.ac.id/index.php/aj/article/view/12523board of directorsfirm sizeleveragefinancial distressaccounting conservatism |
| spellingShingle | Ratieh Widhiastuti Selvia Rahayu The Role of Financial Distress in Mediating The Accounting Conservatism Practices Akrual: Jurnal Akuntansi board of directors firm size leverage financial distress accounting conservatism |
| title | The Role of Financial Distress in Mediating The Accounting Conservatism Practices |
| title_full | The Role of Financial Distress in Mediating The Accounting Conservatism Practices |
| title_fullStr | The Role of Financial Distress in Mediating The Accounting Conservatism Practices |
| title_full_unstemmed | The Role of Financial Distress in Mediating The Accounting Conservatism Practices |
| title_short | The Role of Financial Distress in Mediating The Accounting Conservatism Practices |
| title_sort | role of financial distress in mediating the accounting conservatism practices |
| topic | board of directors firm size leverage financial distress accounting conservatism |
| url | https://journal.unesa.ac.id/index.php/aj/article/view/12523 |
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