The principle of prudence in companies that recognizes costs and losses faster, recognizes income and profits slower, evaluates assets with the lowest value and liabilities with the highest value can be referred to as accounting conservatism. The research aims to determine whether company size, company risk, capital intensity and managerial ownership affect accounting conservatism in manufacturing companies in miscellaneous industry sectors listed on the Indonesia Stock Exchange (IDX) for the 2013-2017 period.
The research design used is causal research, the method used is library study method and documentation method while the type of data used in this study is secondary data. The population used in this study is manufacturing companies in various industry sectors which are listed on the Indonesia Stock Exchange (IDX) for the 2013-2017 period. The sampling method uses purposive sampling method. Based on predetermined criteria obtained a sample of 11 companies for 5 years, bringing the total sample to 55 and dropped to 53 after an outlier. Hypothesis testing uses multiple linear regression analysis.
The research results partially prove that company size and managerial ownership do not affect the capital structure. While company risk and capital intensity significantly influence accounting conservatism. The results of the study simultaneously prove that company size, company risk, capital intensity, and managerial ownership influence accounting conservatism.