The Influence of the Level of Competition on Accounting Conservatism through Corporate Governance

Abstract

This research aims to examine the influence of competition on accounting conservatism through corporate governance. Accounting conservatism is measured using the market to book ratio approach, corporate governance is measured by the Corporate Governance Self-Assessment and competition is measured by the Lener Index. The population in this study was 35 banking companies listed on the Indonesian Stock Exchange. The sampling technique used was Purposive Sampling, resulting in a sample size of 6 companies which were book category 4 banks. The model used in this research was panel data regression using SPSS version 24. The results of this research show that competition influences accounting conservatism and corporate governance. Corporate governance influences accounting conservatism.