PENGARUH DEBT COVENANT, POLITICAL COST, BONUS PLAN, DAN STRUKTUR KEPEMILIKAN ASING TERHADAP PENERAPAN KONSERVATISME AKUNTANSI

Abstract

Conservatism is needed to have good financial statement reports. It makes the reports exaggerated and can be used
as a basis for precise decision-making for the users. Therefore, this research aimed to examine the effect of debt
covenant, political cost, bonus plans, and foreign ownership structure on the implementation of accounting
conservatism. The research was quantitative. Moreover, the data collection technique used purposive sampling. In
line with that, there were 145 samples from 29 Energy and BasicMaterials companies listed on the Indonesia Stock
Exchange (IDX)during 2018-2022. Furthermore, the data analysis technique used multiple linear regression. The
result showed that debt covenant, political cost, and foreign ownership structure had a positive effect on accounting
conservation. It means the first,second, and fourth hypotheses were accepted. Likewise, bonus plans had a positive
effect on accounting conservation. In other words, the third hypothesis was rejected. Additionally, the value of
adjuster R² was 0.68. This means that accounting conservatism could be affected by debt covenant, political cost,
bonus plans, and foreign ownership structure for 68%.