Proceedings of the International Conference on Sustainable Innovation Track Accounting and Management Sciences (ICOSIAMS 2021)

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Accounting Conservatism and Earnings Management: Moderating Effect of the Corporate Life Cycle

Authors
Wahid Hartam1, Etik Kresnawati2, *
1,2Accounting Department, Faculty of Economic and Business, Universitas Muhammadiyah Yogyakarta, Indonesia, 55183
*Corresponding author. Email: etikkresnawati@umy.ac.id
Corresponding Author
Etik Kresnawati
Available Online 13 January 2022.
DOI
10.2991/aebmr.k.211225.041How to use a DOI?
Keywords
accounting conservatism; earnings management; corporate life cycle
Abstract

Accounting conservatism is a principle that calls for a high degree of verification before a company can make a legal claim to any profits. This principle is not intended to manipulate the amount or timing of reporting financial figures. Theoretically, it should be able to suppress management’s opportunistic behavior to manage earnings. Therefore, this study aims to examine the influence of accounting conservatism on earnings management and determine the moderating effect of the corporate life cycle (CLC) in the relationship between them. The objects in this study were manufacturing companies listed on Indonesia Stock Exchange for the 2016-2019 period. This study employed 524 companies as samples selected by the purposive sampling method. Based on the analysis using the random effect model, it was found that accounting conservatism had a negative effect on earnings management, and the corporate life cycle could moderate the relationship between them. These results imply two things: 1) CLC is a factor that needs to be considered in research on the relationship between accounting conservatism and earnings management, and 2) CLC is an essential factor that investors should consider when assessing management in managing a company.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the International Conference on Sustainable Innovation Track Accounting and Management Sciences (ICOSIAMS 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
13 January 2022
ISBN
978-94-6239-504-6
ISSN
2352-5428
DOI
10.2991/aebmr.k.211225.041How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
TY  - CONF
AU  - Wahid Hartam
AU  - Etik Kresnawati
PY  - 2022
DA  - 2022/01/13
TI  - Accounting Conservatism and Earnings Management: Moderating Effect of the Corporate Life Cycle
BT  - Proceedings of the International Conference on Sustainable Innovation Track Accounting and Management Sciences (ICOSIAMS 2021)
PB  - Atlantis Press
SP  - 295
EP  - 303
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211225.041
DO  - 10.2991/aebmr.k.211225.041
ID  - Hartam2022
ER  -