The Influence of Financial Distress, Leverage, Firm Size, and Profitability on Accounting Conservatism

Dinan Fathi Shiddieqy; Prasojo Prasojo; Ristianawati Dwi Utami

doi:10.14421/jai.2023.2.2.060-069

Authors

Dinan Fathi Shiddieqy Universitas Islam Negeri Sunan Kalijaga, Jl. Laksda Adisucipto, Papringan, Caturtunggal, Kecamatan Depok, Kabupaten Sleman, Daerah Istimewa Yogyakarta 55281
Prasojo Prasojo UIN Sunan Kalijaga Yogyakarta
Ristianawati Dwi Utami School of Management, Wuhan University of Technology, China

DOI:

https://doi.org/10.14421/jai.2023.2.2.060-069

Abstract

Purpose: This study aims to examine and analyze the effect of financial distress, leverage, firm size, and profitability on accounting conservatism.

Methodology: The research sample this time is manufacturing companies listed on the Indonesian sharia stock index for 2017–2021. The method used in this study is panel data regression. This study uses the Fixed Effect Model as the best model in the study.

Findings: This test found that the variables financial distress and profitability have a significant positive effect on accounting conservatism. Meanwhile, leverage and firm size have no effect on accounting conservatism.

Novelty: This study continues previous research by using different samples and populations and adding an independent variable.

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