Browsing by Author "Sutraningsih, Rini"

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    THE EFFECT OF FINANCIAL DISTRESS, LEVERAGE RATIO AND SIZE OF COMPANIES ON ACCOUNTING CONSERVATISM
    (Solid State Technology Volume: 63 Issue: 4, 2020) Dewi, Afifa Nurmala; Sutraningsih, Rini; Syari, Ziana Mutiara; Mulyawan, Ferry
    This study has a goal to determine the effect of financial distress, leverage ratio, and company size on accounting conservatism in banking companies listed on the Indonesia Stock Exchange from 2016 to 2019. The secondary data from www.idx.co.id. in the form of financial statements of banking companies were used. The samples were recruited with purposive sampling resulting in 9 companies that meet the criteria. The variables tested are financial distress (X1), leverage ratio (X2), company size (X3), and accounting conservatism (Y). Multiple linear regression and classic assumption test were used for data analysis, while F-test and t-test were used for testing the hypothesis. The critical value of t is determined by the degree of freedom equal to n-1. The level of significance is 5% or 0.05 with the degree of freedom equal to n-k-1. It is concluded that H0 is accepted and Hα is rejected, showing that financial distress, leverage ratio, and company size are not strongly correlated with accounting conservatism. Meanwhile, financial distress, leverage ratio, and company size contribute to accounting conservatism by 14%, while the remaining 86% are the other factors.