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C. Objective Research and Benefits
1. Objective
In accordance with the formula above, this study has the objective to:
a. Provide empirical evidence whether Independent commissioner influence
Accounting Conservatism
b. Provide empirical evidence whether Managerial Ownership influence
Accounting Conservatism
c. Provide empirical evidence whether Growth opportunities influence
Accounting Conservatism
d. Provide empirical evidence whether Sales growth influence Accounting
Conservatism
e. Provide empirical evidence whether Independent commissioner, managerial
ownership, growth opportunities and sales growth simultaneously influence Accounting Conservatism
2. Benefits
With the research is expected to have benefits can be taken for all interested parties. Results of the analysis obtained in this study is expected to provide benefits
for:
Theoretical Benefits.
1. Researcher, As a comparison between the theories that have been writers get during the course with reality. So that can know the problems facing
company and conformity among others obtained so as to obtain solving existing problems.
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2. Students of Accounting - As a source of information for other researchers who are interested in
the same issues and analysis and for those who need the information. - As a science that could enrich the knowledge about accounting
conservatism
Practical Benefits
1. Company, by doing research on the accounting conservatism
implementation is expected to be used as an evaluation of the importance of corporate.
2. Investor is hoped that this research can be used as a consideration in
the investment decision on companies that implement accounting conservatism.
3. Government, by doing this research on the accounting implementation
is expected to be used as an evaluation of the importance of state tax.
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CHAPTER II STUDY LITERATURE
A. Theory Development
1. Positive Accounting Theory Positive accounting theory explains that managers have an incentive or
encouragement to maximize welfare. This theory is based on a section that managers and shareholders are rational. They seek to maximize their utility, which
is directly linked to their prosperity Nugroho and Mutmainah, 2012 Positive accounting theory predicts that managers have a tendency to raise
profit to hide poor performance. The tendency of managers to increase their profits can be boosted by four issues, namely the hiring of asymmetric
information, limited working period managers, limited liability managers, and asymmetry payment. Shareholders and creditors trying to avoid overpayment to
the manager to ask for the implementation of conservative accounting Watts, 2003. Therefore it can be concluded that managers tend to organize accounting
liberal, but the lender in debt contracts and shareholder in compensation contracts tend to ask the manager held a conservative accounting Nugroho and
Mutmainah, 2012 2. Agency Theory
Agency theory assumes that all individuals acting in their own interests. Agency theory was first introduced by Jensen and Meckling 1976 on Wulandari
et al 2014. Agency relationship arises because of the contract between shareholders principal and management company agent who is the manager of
the company, the contract holder authorizes management to run the companys operations are included in decision-making. Both groups the agent and principal
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