The Characteristics Board of Directors, Family Ownership and Accounting Conservatism: Evidence from Family Public Firms in Indonesia
Year: 2015
Type: article
Abstract: This study attempt to identify whether family ownership can strengthen the relationship between board of directors on conservatism. Our main hypothesis are tested on a sample of 99 Indonesia firms that list on Indonesian Stock Exchange (IDX). The result show that there is positive relationship between audit comitee on conservatism. This study also show that there is no relationship between proportion of independent directors on conservatism. Our result also suggest the existence of family ownership weaken the impact between the proportion of independent directors and conservatism; while family ownership does not weaken or strengthen the audit committee relationship to conservatism. The evidence deepen the emperical evidence of Agency Coflict Type II and entrenchment effect among indonesian firms that owned by family. Accounting Conservatism in concentrated ownership is under control of family ownership through the hand of board of directors. Keywords : Agency conflict Type II, Characteristics of Board of Directors, Family Ownership, Accounting Conservatism
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2178930066