Growth Opportunity, Capital Intensity, and Accounting Conservatism: The Moderating Role of Managerial Ownership


The application of accounting conservatism in presenting and disclosing financial information is important and necessary due to the tendency of management in presenting financial statements with an overstated inclination which can mislead users. The purpose of this research is to examine and analyse the effect of growth opportunity and capital intensity on accounting conservatism and to consider managerial ownership as a moderating variable. The population of the research is the manufacturing companies listed on the Indonesia Stock Exchange during the period of 2016-2019. This research uses a purposive sampling method in the selection of the sample based on detailed criteria. This method obtains samples of as many as 53 companies during the period of observation. The research uses moderated regression analysis. The results of this research find that capital intensity has a positive effect on accounting conservatism, but the growth opportunity has influences negatively significant to accounting conservatism. The study also finds that managerial ownership successfully manages to become a moderating variable between growth opportunities and capital intensity on accounting conservatism.

Keywords: conservatism, accounting, growth, capital, managerial

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