The Relationship between Ownership Structure and Accounting Conservatism in Manufacturing Sector Companies Listed on Indonesia Stock Exchange

Setiawan, Yan Christianto and Yie Ke, Feliana (2015) The Relationship between Ownership Structure and Accounting Conservatism in Manufacturing Sector Companies Listed on Indonesia Stock Exchange. In: Asia Pacific Conference on Accounting and Finance, 11-12 Juni 2015, Bali.

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Abstract

Majority of Indonesian companies are family firms. Previous studies report that family firms have type II agency problem. Conservatism, as one proxy of financial reporting quality, facilitates the efficiency of the principal-agent contract. This study aims to examine the relationship of ownership structure and accounting conservatism. In this study, the population is all companies in manufacturing sector and listed on the Indonesia Stock Exchange (BEI) period 2011 - 2013. Analysis of data uses panel data and the best model is showed by fixed effect regression, rather than random effect and ordinary least square. The results of this study show that (1) there is a positive relationship between the largest shareholder or controlling shareholder and accounting conservatism; (2) there is a positive relationship between the family as the largest shareholder as well as the controlling shareholder and accounting conservatism; (3) there was no correlation between non-family as the largest shareholder and accounting conservatism, but there is a negative relationship when nonfamily become the controlling shareholder and accounting conservatism; (4) other blockholder presence was not related significantly to reduce the largest shareholder preferences regarding accounting conservatism on the whole sample or sub-sample of non-family, but there is a negative relationship in the sub-sample when the family became the largest shareholder. Keywords: family ownership, non - family ownership, controlling shareholder, blockholder, accounting conservatism, agency theory

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: family ownership, non - family ownership, controlling shareholder, blockholder, accounting conservatism, agency theory
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Business and Economic > Department of Accounting
Depositing User: Yie Ke Feliana 3193
Date Deposited: 15 Jun 2015 01:35
Last Modified: 15 Jun 2015 01:35
URI: http://repository.ubaya.ac.id/id/eprint/24635

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