THE EFFECT OF DEBT COVENANT, POLITICAL COST, FINANCIAL DISTRESS, AND LITIGATION RISK ON ACCOUNTING CONSERVATISM

Abstract

The purpose of this research is to determine the effect of debt covenant, political cost, financial distress and litigation risk on the accounting conservatism in mining companies listed on the Indonesia Stock Exchange in 2016-2022. This type of research is quantitative research with descriptive approach. The population in this study was 78 companies. The sampling technique uses a purposive sampling. This study used multiple linear regression analysis with the SPSS 22 program. The research results show that debt covenants have a negative effect on accounting conservatism with a significance value of 0.000 <0.05. Political costs have a negative effect on accounting conservatism with a significance value of 0.000 <0.05. Financial distress has no effect on accounting
conservatism with a significance value of 0.229 > 0.05. Litigation risk has no effect on accounting conservatism with a significance value of 0.305 > 0.05.