Konservatisme Akuntansi dan Kinerja Perusahaan di Indonesia

Suwarno Suwarno, Suwandi Suwandi, Mu'minatus Sholichah

Abstract


This study aims to confirm the relationship between accounting conservatism and the financial performance of companies in Indonesia in the 2019 period. Accounting conservatism is still debated between standard setters and accountants. The accountants argue that accounting conservatism is still needed to reduce the opportunistic behavior of managers. Meanwhile, accounting standard setters stated that accounting conservatism had an impact on biased financial statements. The research sample was selected with several criteria so that 564 companies were obtained. Panel data were analyzed by regression and the results showed that conservative accounting had an effect on Return On Assets (ROA). Accounting conservatism will reduce information asymmetry, which will reduce managers’ opportunistic behavior and increase investment efficiency and improve company performance. However, accounting conservatism has no effect on firm value (Tobin’s Q). Accounting conservatism will cause financial statements to tend to be biased because financial statements cannot describe the actual situation. Therefore, financial statements are not able to predict future cash flows.

Keywords


Accounting Conservatism; Company Performance; Company Value

Full Text:

PDF

References


Ahmed, A. S., & Duellman, S. (2013). Managerial Overconfidence and Accounting Conservatism. Journal of Accounting Research, 51(1), 1–30. https://doi.org/10.1111/j.1475-679X.2012.00467.x

Aminu, L., & Hassan, S. U. (2017). Accounting Conservatism And Investment Efficiency Of Listed Nigerian Conglomerate Firms. Scholedge International Journal of Business Policy & Governance ISSN 2394-3351, 3(11), 167. https://doi.org/10.19085/journal.sijbpg031101

Aminu, L., & Hassan, S. U. (2018). Accounting Conservatism And Financial Performance Of Nigerian Deposit Money Banks: An Analysis Of Recent Economic Recession. Scholedge International Journal of Business Policy & Governance ISSN 2394-3351, 4(12). https://doi.org/10.19085/journal.sijbpg041201

Amran, N. A., & Manaf, K. B. A. (2014). Board Independence and Accounting Conservatism in Malaysian Companies. Procedia - Social and Behavioral Sciences, 164. https://doi.org/10.1016/j.sbspro.2014.11.095

Asri, M. (2017). The Effect of Accounting Conservatism on Earning Quality. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2992129

Beaver, W. H., Lambert, R. A., & Ryan, S. G. (1987). The information content of security prices. A second look. Journal of Accounting and Economics, 9(2). https://doi.org/10.1016/0165-4101(87)90003-6

Charitou, A., Lambertides, N., & Trigeorgis, L. (2007). Earnings behaviour of financially distressed firms: The role of institutional ownership. Abacus, 43(3). https://doi.org/10.1111/j.1467-6281.2007.00230.x

Da Silva, A., Ganz, A. S., Rohenkohl, L. B., & Klann, R. C. (2019). Accounting conservatism in complex companies. Revista Contabilidade e Financas, 30(79). https://doi.org/10.1590/1808-057x201806530

Donaldson, L., & Davis, J. H. (1991). Stewardship Theory or Agency Theory: Australian Journal of Management, 16(June 1991).

El-Habashy, H. A. (2019). The Impact of Accounting Conservatism on Corporate Performance Indicators in Egypt. International Journal of Business and Management, 14(10). https://doi.org/10.5539/ijbm.v14n10p1

Fariz, N. M., Mohammed, N. F., Zulkepli, N. S., & Kamaluddin, A. (2020). Accounting conservatism and financial performance: Accountability of shariah compliant companies in Malaysia. Humanities and Social Sciences Letters, 8(3). https://doi.org/10.18488/JOURNAL.73.2020.83.280.297

Francis, R. N., Harrast, S., Mattingly, J., & Olsen, L. (2013). The relation between accounting conservatism and corporate social performance: An empirical investigation. Business and Society Review, 118(2). https://doi.org/10.1111/basr.12008

García Lara, J. M., García Osma, B., Penalva, F., Garcia Osma, B., & Penalva, F. (2016). Accounting conservatism and firm investment efficiency. Journal of Accounting and Economics, 61(1), 221–238. https://doi.org/10.1016/j.jacceco.2015.07.003

Givoly, D., Hayn, C. K., & Natarajan, A. (2007). Measuring reporting conservatism. Accounting Review. https://doi.org/10.2308/accr.2007.82.1.65

Hellman, N. (2008). Accounting Conservatism under IFRS. Accounting in Europe, 5(2), 71–100. https://doi.org/10.1080/17449480802510492

Hsieh, C. C., Ma, Z., & Novoselov, K. E. (2019). Accounting conservatism, business strategy, and ambiguity. Accounting, Organizations and Society, 74(643010), 41–55. https://doi.org/10.1016/j.aos.2018.08.001

Khalid Latif, Ghulam Mujtaba Chaudhary, & Aon Waqas. (2020). Relationship Between Accounting Conservatism and Investment Efficiency with the Moderating Role of IFRS Adoption in Pakistan. Journal of Accounting and Finance in Emerging Economies, 6(4), 1139–1150. https://doi.org/10.26710/jafee.v6i4.1471

Laux, V., & Ray, K. (2020). Effects of accounting conservatism on investment efficiency and innovation. Journal of Accounting and Economics. https://doi.org/10.1016/j.jacceco.2020.101319

Li, H. (2020). Business Strategy, Accounting Conservatism and Performance. Accounting and Finance Research, 9(2). https://doi.org/10.5430/afr.v9n2p23

Ohlson, J. A., & Feltham, G. A. (1995). Valuation and Clean Surplus Accounting for Operating and Financial Activities. Contemporary Accounting Research, 11(2).

Razzaq, N. (2016). Accounting Conservatism Alleviates Firm’s Investment Efficiency: An Evidence from China. International Journal of Business and Economics Research, 5(4). https://doi.org/10.11648/j.ijber.20160504.12

Regina, R. (2021). The influence of intellectual capital, good corporate governance and accounting conservatism on company’s financial performance. Journal of Islamic Accounting and Finance Research, 3(1). https://doi.org/10.21580/jiafr.2021.3.1.7316

Sana’a, N. M. (2016). The effect of accounting conservatism on financial performance indicators in the Jordanian insurance companies. Journal of Internet Banking and Commerce, 21(1).

Watts, R. L. (2005). Conservatism in Accounting. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.371820




DOI: https://doi.org/10.15408/akt.v15i1.22152 Abstract - 0 PDF - 0

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Published by
Department of Accounting, Faculty of Economic and Business,
Syarif Hidayatullah State Islamic University
Jl. Ir. H. Juanda no 95, Ciputat 15412, Tangerang Selatan, Banten, Indonesia
Phone:+62(21) 7493318, Fax.: +62 (21) 7496006. e-Mail: akuntabilitas@uinjkt.ac.id 

View My Stats License

This work is licensed under CC BY-SA

Â