THE EFFECT OF FINANCIAL DISTRESS, LEVERAGE, PROFITABILITY, AND FIRM SIZE ON ACCOUNTING CONSERVATISM ON PROPERTY AND REAL ESTATE COMPANIES

Abstract

This research aims to provide empirical evidence related to the effect of financial distress,
leverage, profitability, and firm size on accounting conservatism. This research takes data
using a purposive sampling method on property and real estate sector companies in 2018-2020
listed on the IDX. The number of samples used in this study were 12 companies. The analytical
method used is multiple regression analysis with SPSS 15.0 software, using a significance level
(α) of 5%. The result show that financial distress has no effect on accounting conservatism,
leverage has a positive effect on accounting conservatism, profitability has a positive effect on
accounting conservatism, and firm size has no effect on accounting conservatism. The result of
the study simultaneously show that financial distress, leverage, profitability, and firm size
together are able to explain accounting conservatism