ACCOUNTING CONSERVATIME THROUGH DEBT COVENANT, POLITICAL COST AND BONUS PLAN
Keywords:
Political Costs, Debt Contracts, Bonus Plans, Accounting Conservatism
Abstract
Introduction/Main Objectives: In Indonesia, there are many cases of fund inflation, especially in the consumer goods manufacturing industry. Ultimately, this can be detrimental to the company itself and other parties involved. This is the result of company management errors in presenting financial reports, which often assume profits are more than they actually are. As a result, the profit value becomes greater than it actually is. Profit is One indication is good news or bad news Which generated from activity annual something company (Yogi G ,20 20 ). Therefore, companies must follow the principle of prudence, or accounting conservatism, when preparing their financial reports. This study investigates manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2021 which are the subjects of this research. This research aims to determine how Accounting Conservatism is influenced by Political Costs, Debt Contracts, and Bonus Plans. Background Problems There are increasing cases of fund inflation in Indonesia, especially in Manufacturing Companies in the Consumer Goods Industry Sector . Novelty: Research Methods: This research uses quantitative methods . The population of this research is Consumer Goods Industrial Manufacturing Companies listed on the Indonesia Stock Exchange from 2017 to 2021 . The sample used was 12 companies over 5 years, so that 60 data were processed. The testing method used was multiple linear regression , coefficient of determination test, T test and F test using SPSS . Findings/Results: . Based on the research results, it shows that the contribution of Political Costs influences Accounting Conservatism by 20.61 % ; Debt Contract contribution of 3.13%; and Bonus Plan contributions of 6.96%. Thus, the contribution of Political Costs, Debt Contracts, and Bonus Plans as a whole influences Accounting Conservatism by 32.8%. Conclusion: The results of this research partially show that Debt Contracts and Bonus Plans have no effect on Accounting Conservatism while Political Costs affect Accounting Conservatism.References
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Ginanjar Y. Sales Volume as a Moderating Variable on the Effect of Net Profit and Promotion Costs. J-AKSI: JOURNAL OF ACCOUNTING AND INFORMATION SYSTEMS. 2020 Feb 1 ;1 (1):112-23.
Afriani, N., Zulpahmi, & Sumardi. (2019). Factors Affecting Accounting Conservatism. Buana Accounting , 6 (1), 40–56.
Daryanto, AB, & Santioso, L. (2020). Factors That Influence the Implementation of Accounting Conservatism. Estuary Journal of Economics and Business , 4 (1), 126–136. https://doi.org/https://doi.org/10.24912/jmieb.v4i1.7575
Dewi, MW, & Heliawan, YA (2021). The Influence of Managerial Ownership, Public Ownership, Leverage, Firm Size, and Operating Cash Flow on Accounting Conservatism. Journal of Accounting and Taxation , 22 (1), 426–433. https://doi.org/10.29040/jap.v22i1.2723
El-Habashy, HAK (2019). The effect of corporate governance attributes on accounting conservatism in Egypt. Academy of Accounting and Financial Studies Journal , 23 (3), 1–18.
Fahmi, I. (2020). Financial Report Analysis . Alphabet.
Ganevia, NR, Karim, NK, & Hudaya, R. (2022). The Influence of Leverage, Company Size and Managerial Ownership on Accounting Conservatism. Journal of Applied Business , 6 (2), 117–129. https://doi.org/10.24123/jbt.v6i2.5096
Haloman, JF, Alfionita, V., Prianka, & Katharina, N. (2021). The Influence of Corporate Governance, Debt Covenant, Bonus Plan, and Political Cost on Accounting Conservatism in Manufacturing Companies. MEA Scientific Journal (Management, Economics and Accounting) , 5 (1), 1–14.
Haniifah, SN, Nurbaiti, A., & Pratama, F. (2021). The Influence of Bonus Plans, Public Ownership, Company Size and Profitability on Accounting Conservatism in BUMN Companies Listed on the BEI 2015-2019. MEA Scientific Journal (Management, Economics and Accounting) , 5 (3), 592–610.
Hariyanto, E. (2020). Analysis of Factors that Influence Accounting Conservatism. Compartment: Scientific Journal of Accounting , XVIII (1), 116–129. http://jurnalnasional.ump.ac.id/index.php/kompartemen/
Haryadi, E., Sumiati, T., & Umdiana, N. (2020). Financial Distress, Leverage, Profit Persistence and Company Size on Accounting Conservatism. COMPETITIVE Journal of Accounting and Finance , 4 (2), 66–78. https://doi.org/10.31000/c.v4i2.2356
Hasanah, N., & Siswanti, T. (2019). Evaluation of Recognition, Measurement and Presentation of Income Based on PSAK 23 at PT. Angkasa Pura II (Persero). Journal of Solar Business and Accounting , 4 (1), 34–50. https://doi.org/10.35968/jbau.v4i1.262
Iskandar, OR (2016). The Influence of Debt Covenants, Bonus Plans, and Political Costs on Accounting Conservatism (Empirical Study of Manufacturing Companies in the Consumer Goods Industry Subsector Listed on the IDX in 2012-2015). Indonesian Banking School , 1–15.
Jao, R., & Ho, D. (2019). The Influence of Ownership Structure and Debt Covenant on Accounting Conservatism. Jambi Accounting Research Journal , 2 (1), 1–13. https://doi.org/10.35141/jraj.v2i2.426
Martika, LD, Rahmawati, T., & Yunus, S. (2021). Accounting Conservatism: An In-Depth Study within the Framework of Positive Accounting Theory. Logic: Kuningan University Research Journal , 12 (2), 119–129.
Pambudi, J.E. (2017). The Influence of Managerial Ownership and Debt Covenant on Accounting Conservatism. Competitive , 1 (1), 87–110.
Putri, RFB, & Trisnawati, R. (2022). The Influence of Institutional Ownership, Managerial Ownership, CFO Tenure, Debt Covenant and Growth Opportunities on Accounting Conservatism. E-Qien : Journal of Economics and Business , 11 (3), 1167–1183.
Sandria, F. (2021, July). Series of Lapkeu Scandals on the Indonesian Stock Market, Indofarma-Hanson! CNBC Indonesia . https://www.cnbcindonesia.com/market/20210726191301-17-263827/deretan-skandal-lapkeu-di-pasar-saham-ri-indofarma-hanson?page=all
Sari, AMI (2023). The Influence of Debt Covenant, Company Size, and Bonus Plan on Accounting Conservatism with Institutional Ownership as a Moderator Variable. Compartment: Accounting Scientific Journal , 20 (2), 286. https://doi.org/10.30595/kompartemen.v20i2.13881
Savitri, E. (2016). Accounting Conservatism: How to Measure, Empirical Review and Factors That Influence It. Pustaka Sahila Yogyakarta , 1 , 103.
Sidik, S. (2019). Threatened with Delisting, Three Pillars Chase 2020 Financial Report Deadline. CNBC Indonesia . https://www.cnbcindonesia.com/market/20191213152042-17-122922/terancam-delisting-tiga-pilar-kejar-tenggat-lapkeu-2020
Sugiyono. (2018). Quantitative Research Methods . Alphabet.
Tazkiya, H., & Sulastiningsih, S. (2020). The Influence of Growth Opportunity, Financial Distress, CEO Retirement on Accounting Conservatism. Journal of Business Studies , 28 (1), 13–34. https://doi.org/https://doi.org/10.32477/jkb.v28i1.34
Wareza, M. (2019). Three Pillars and the Drama of Fund Inflation. CNBC Indonesia . https://www.cnbcindonesia.com/market/20190329075353-17-63576/tiga-pilar-dan-drama-penggelembungan-dana
Ginanjar Y. Sales Volume as a Moderating Variable on the Effect of Net Profit and Promotion Costs. J-AKSI: JOURNAL OF ACCOUNTING AND INFORMATION SYSTEMS. 2020 Feb 1 ;1 (1):112-23.
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