PENGARUH ASIMETRI INFORMASI, FINANCIAL DISTRESS, KEPEMILIKAN MANAJERIAL, LEVERAGE, DAN PROFITABILITAS TERHADAP PRUDENCE

Abstract

This research aimed to examine the effect of information asymmetry, financial distress, managerial ownership,
leverage, and profitability on prudence. While the independent variables were information asymmetry which was
referred to spread, financial distress which was referred to Altman Z-score, managerial ownership which was
referred to KM, leverage which was referred to Debt to Equity Ratio, and profitability which was referred to Return
On Asset. Meanwhile, the dependent variable was prudence which was referred to accrual.The research was
quantitative. Moreover, the data collection technique used purposive sampling, in which the sample was based on
criteria given. In line with that, there were 170 observations data and 34 manufacturing companies which were
listed on Indonesia Stock Exchange (IDX) during 2016-2020. Furthermore, the data analysis technique used
multiple linear regression with SPSS 25. The research result concluded that information asymmetry as well as
profitability had a positive effect on prudence. On the other hand, both financial distress and leverage had a
negative effect on prudence. In contrast, managerial ownership did not affect prudence.