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Corporate Governance: Will Moderate The Effect Accounting Consevatism Toward Equity Valuation

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  • Paramita, Ratna

Abstract

This study aimed to examine the effect of conservatism on equity valuation with corporate governance variable as moderating variable.The study was conducted on 365 manufacturing companies that meet the criteria of observations in 2011 to 2015. The variables used in this research is accounting consevatism as independent variables, corporate governance as moderating variable and equity valuation as dependen variable. The board of directors and manajerial ownership in this article as a proxy of corporate governance. Studies show conservatism affect the equity valuation. The higher the level of conservatism that increasingly reflects the reality of the financial statements and this would be a good response from investors. Board of commisioners and managerial ownership does not strengthen the influence of conservatism on equity valuation. Manejerial ownership in manufacturing companies does not affect the management to apply accounting conservatism.

Suggested Citation

  • Paramita, Ratna, 2018. "Corporate Governance: Will Moderate The Effect Accounting Consevatism Toward Equity Valuation," OSF Preprints gu8xh, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:gu8xh
    DOI: 10.31219/osf.io/gu8xh
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    References listed on IDEAS

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    1. Healy, Paul M. & Palepu, Krishna G., 2001. "Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 405-440, September.
    2. Christine Botosan, 2006. "Disclosure and the cost of capital: what do we know?," Accounting and Business Research, Taylor & Francis Journals, vol. 36(S1), pages 31-40.
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