Effect Leverage, Profitability, Firm Size and Financial Distress Against Accounting Conservatism (Empirical Study on Bank Sub-Sector Service Companies Listed on the Indonesia Stock Exchange in 2017 - 2020)

Abstract

This study aims to analyze the effect of Leverage (DER), Profitability (ROA), Company Size (Size) and Financial Distress (Z-Score) Against Accounting Conservatism in Bank Sub-Sector Service Companies Listed on the Indonesia Stock Exchange in 2017-2020. 

The type of quantitative research conducted using secondary data with a population of all Bank Sub-Sector Service Companies listed on the IDX in 2017-2020 obtained 88 samples using the purposive sampling. The data analysis techniques used were descriptive statistical tests, classical assumption tests (normality test, multicollinearity, heteroscedasticity and autocorrelation), multiple linear regression analysis and hypothesis testing (coefficient of determination test, t statistical test and F statistical test) with software SPSS-25.

The results showed that partially Leverage (DER) (X1), Company Size (Size) (X3), and Financial Distress (Z-Score) (X4) has no effect while Profitability (ROA) (X2) has an effect on Accounting Conservatism. Simultaneously the variables Leverage (DER), Profitability (ROA), Company Size (Size) and Financial Distress (Z-Score) together have an effect on Accounting Conservatism.