Abstract :
This study aims to determine the effect of financial difficulties, debt levels, and the
risk of litigation against accounting conservatism. In this study, the sample used is
the manufacturing sector companies listed on the Indonesia Stock Exchange. The
sampling technique in this research is purposive sampling in order to obtain a
sample of 87 companies. The data in this study using the data current assets,
current liabilities, retained earnings, earnings before interest and taxes, the stock
market value, the total debt, total assets, net income, total capital, operating cash
flow, depreciation, amortization, and sales. Hypothesis testing using a bootstrap
technique to see the effect of independent variables on the dependent variable.
The tools used to analyze the data using IBM SPSS 23.
Results of testing the first hypothesis states that the level of financial difficulties
negatively affect accounting conservatism. While the results of testing the second
hypothesis states that the level of debt has no effect on accounting conservatism.
Then for the third hypothesis states that the results of litigation risk negatively
affect accounting conservatism.
Keywords : Level of Financial Distress, Debt, Litigation Risk, Accounting Conservatism.