Research Paper
Year: 2022 | Month: January | Volume: 9 | Issue: 1 | Pages: 108-120
DOI: https://doi.org/10.52403/ijrr.20220116
The Effect of Managerial Ownership Structure, Financial Distress and Growth Opportunities to Application of Accounting Conservatism Principles with Litigation Risk as Moderating Variables on Manufacturing Companies Listed on the Indonesia Stock Exchange
Oktavia Fahrina Lubis1, Azhar Maksum1, Muammar Khadafi1
1Department of Accounting, Faculty of Economics and Business at Universitas Sumatera Utara, Indonesia
Corresponding Author: Oktavia Fahrina Lubis
ABSTRACT
This study aims to examine and analyze the effect of managerial ownership structure, financial distress, and growth opportunities on accounting conservatism with litigation risk as a moderating variable. The population in this study was 171 manufacturing companies listed on the Indonesia Stock Exchange for the 2010-2019 period. This research was conducted using the purposive sampling technique so that 36 samples were obtained. The data analysis method used multiple linear regression analysis and interaction tests with the help of the Eviews application program.
The study results indicate that growth opportunities partially have a positive effect on applying the principle of accounting conservatism. Meanwhile, managerial ownership structure and financial distress partially do not affect the application of accounting conservatism principles. Simultaneously managerial ownership structure, financial distress and growth opportunities affect the application of accounting conservatism principles. Litigation risk as a moderating variable cannot moderate the influence of managerial ownership structure, financial distress, and growth opportunities on applying accounting conservatism principles to manufacturing companies listed on the Indonesia Stock Exchange for the 2010-2019 period.
Keywords: managerial ownership structure, financial distress, growth opportunities, litigation risk and accounting conservatism.
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