PENGARUH LEVERAGE, UKURAN PERUSAHAAN, DAN POTENSI KEBANGKRUTAN TERHADAP KONSERVATISME AKUNTANSI

Abstract

Accounting conservatism is a principle of awareness in facing uncertain conditions, which affects the report of financial statements. This principle causes the company to record income more carefully or later than necessary and immediately recognize expenses. Consequently, the financial statement generating profits and assets tends to be low (understatement), while the expenses and debt tend to be high (overstatement). Therefore, this research aimed to examine the leverage, firm size, and bankruptcy potency on accounting conservatism. Leverage was measured by the Debt to Asset Ratio, firm size was measured by the logarithm of total assets, and bankruptcy potency was measured by the Grover method. Moreover, accounting conservatism used the accrual method. This research was quantitative. The data collection technique used purposive sampling with determined criteria. In line with that, there were 14 companies from 44 mining companies listed on the Indonesia Stock Exchange during 2019-2022 as the sample. Furthermore, the data analysis technique used multiple linear regression with the SPSS (Statistical Product and Service Solution) 26 version. The result showed that leverage did not affect accounting conservatism. On the other hand, both firm size and bankruptcy potency had a positive effect the accounting conservatism.