Title: POLITICAL CONNECTION AS A MODERATION OF THE INFLUENCE OF GOOD CORPORATE GOVERNANCE ON ACCOUNTING CONSERVATISM
Authors: CINTAMY PRANANTI PUTRI
Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
The implementation of good corporate governance (GCG) in companies can influence the financial reports produced. The implementation of GCG in Indonesia can be reflected in the Corporate Governance Perception Index (CGPI) issued by the Indonesian Institute for Corporate Governance (IICG). Political connection variables are considered to be able to moderate the influence of GCG on conservatism. This research aims to empirically test the influence of good corporate governance (GCG) on accounting conservatism and what the moderating effect of political connections between GCG is on accounting conservatism. This research uses a sample of all publicly traded companies registered as participants in the CGPI assessment by IICG from 2012-2017, so the total number of research samples used is 96 samples. The analysis techniques used are multiple linear regression analysis and moderated regression analysis (MRA) using the Warp PLS 6.0 statistical program. The research results reveal that GCG has a significant positive effect on accounting conservatism and political connections weaken the influence of GCG on accounting conservatism.
Keywords: Accounting Conservatism, Good Corporate Governance, Corporate Governance Perception Index, Political Connections
Sources: http://repository.unair.ac.id/83888/