Pengaruh Agency Cost of Free Cash Flow Terhadap Tingkat Konservatisme dan Pengujian Efek Moderasi Kebijakan Hutang, Pendistribusian Kas, Persistensi Kas, dan Tata Kelola Perusahaan
:
https://doi.org/10.9744/jak.17.1.41-56
Keywords:
Conservatism, accruals, agency cost of free cash flow, debt, dividend, stock repurchase, cash retention, corporate governance.Abstract
This research investigates whether the J-type firm (high agency cost of free cash flow) provide more conservative financial statements than non J-type firm. Besides, this research also aim to examine the moderating effects of debt, dividend, stock repurchase, cash persistency, and corporate governance on the relationship between the level of agency cost of free cash flow and conservatism level of financial statements. This research uses two measurement of conservatism, namely accrual conservatism and market value conservatism. Research sample includes manufacturing companies listed in the Indonesian Stock Exchange for the year 2007, 2008 and 2010. The result proves that there is a positive and significant relationship between the level of agency cost of free cash flow and the two measurement of conservatism level of financial stataments. However, this research shows that there is no effect of the moderating variables on that relationship.References
Ahmed, A. S., Billings, K. B., Morton, M. R., and Stanford-Harris, M. (2002). The Role of Accounting Conservatism In Mitigating Bondholder-Shareholder Conflicts over Dividend Policy and in Reducing Debt Costs. The Accounting Review, 77(4), 867-890.
Ray, B., Robin, A., and Wu, J. S. (2003). Incentives Versus Standards: Properties of Accounting Income In Four East Asian Countries. Journal of Accounting and Economic, 36(1–3), 235–270.
Ball, R. A. Y. and Shivakumar, L. (2006). The Role of Accruals in Asymmetrically Timely Gain and Loss Recognition. Journal of Accounting Research, 44(2), 207-242.
Basu, S. (1997). The Conservatism Principle and The Asymmetric Timeliness Of Earnings. Journal of Accounting and Economics, 24(1), 3-37.
Beekes, W., Pope, P., and Young, S. 2004. The Link Between Earnings Timeliness, Earnings Conser-vatism and Board Composition: Evidence From The UK. Corporate Governance, 12(1), 47-59.
Berle, A. A. and Means, G. C. (1932). The Modern Corporation and Private Property. New York: Harcourt, Brace & World.
Bushman, R. M. and Piotroski, J. D. (2006). Financial Reporting Incentives for Conservative Accounting: The Influence of Legal and Political Institutions. Journal of Accounting and Economics, 42(1-2), 107-148.
Crutchley, C. E. and Hansen, R. S. (1989). A Test of the Agency Theory of Managerial Ownership, Corporate Leverage, and Corporate Dividends. Financial Management, 18(4), Winter, 36-46.
Dechow, P. M., Richardson, S. A., and Sloan, R. G. (2008). The Persistence and Pricing of The Cash Component of Earnings. Journal of Accounting Research, 46(3), 53-566.
Dittmar, A., Mahrt-Smith, J., and Servaes, H. (2003). International Corporate Governance and Corporate Cash Holdings. Journal of Financial and Quantitative Analysis, 38(1), 111-133.
Easterbrook, F. H. (1984). Two Agency-Cost Expla-nations of Dividends. The American Economic Review. 74(4), 650-659
García Lara, J., García Osma, B., and Penalva, F. (2009). Accounting Conservatism and Corporate Governance. Review of Accounting Studies, 14(1), 161-201.
Givoly, D. and Hayn, C. (2000). The Changing Time-Series Properties of Earnings, Cash Flows and Accruals: Has Financial Reporting Become More Conservative? Journal of Accounting and Economics, 29, 287-320.
Grullon, G., Michaely, R. (2004). The Information Content of Share Repurchase Programs. The Journal of Finance, 59(2), 651-680.
Harford, J., Mansi, S. A., and Maxwell, W. F. (2008). Corporate Governance and Firm Cash Holdings in The US. Journal of Financial Economics, 87(3), 535-555.
Holthausen, W. R. and Watts, L. R. (2001). The Rele-vance of The Value-Relevance Literature for Financial Accounting Standard Setting. Journal of Accounting & Economics, 31(1-3), 3-75.
Jensen, M. C. (1986). Agency Costs of Free Cash Flow, Corporate Finance and Takeovers. The American Economic Review, 76(2), 323-329.
Jensen, M. C. (1989). Eclipse of The Public Corporation. Harvard Business Review, 67, 61–74.
Jensen, C. M. (2005). Agency Costs of Overvalued Equity. Financial Management, 34(1), 5-19.
Jensen, M. C. and Meckling. W. H. (1976). Theory of The Firm: Managerial Behavior, Agency Costs and Ownership Structure, Journal of Financial Economics. 3(4), 305-360.
Kose John dan Anzhela Knyazeva (2006). Payout Policy, Agency Conflicts, and Corporate Governance. www.ssrn.com
La Porta, R., F. Lopez-De-Silanes, A. Shleifer, and R. Vishny (2000), Agency Problems and Dividend Policies around The World, Journal of Finance, 55 (1), 1-33.
LaFond, R. and Watts, R. (2008). The Information Role of Conservatism. The Accounting Review, 83(2), 447-478.
LaFond, R. and Roychowdhury, S. (2008). Managerial Ownership and Accounting Conservatism. Journal of Accounting Research, 46(1), 101-135.
Opler, T., Pinkowitz, L., Stulz, R., and Williamson, R. (1999). The Determinants and Implications of Corporate Cash Holdings. Journal of Financial Economics, 52(1), 3-46.
Richardson, S. A., Sloan, R. G., Soliman, M. T., Tuna, I. A. (2005). Accrual Reliability, Earnings Persistence and Stock Prices. Journal of Acoounting and Economics, 39, 437-485.
Shleifer, A., & Vishny, R. W. (1997). A Survey of Corporate Governance. The Journal of Finance, 52(2), 737-783.
Wardhani, R., Utama, S., Rossieta, H. (2015). The Effect of Governance System and Degree of Convergence to IFRS on The Quality of Financial Reporting: Evidence From Asia. Corporate Ownership and Control, 12(4), 409-423.
Wardhani, R. (2008). Tingkat Konservatisme Akuntansi di Indonesia dan Hubungannya dengan Karakteristik Dewan sebagai Salah Satu Mekanisme Corporate Governance. Work-ing Paper, Fakultas Ekonomi Universitas Indonesia.
Watts, L. R. (2003a). Conservatism in Accounting part I: Explanations and Implications. Accounting Horizons, 17(3), 207-221
Watts, L. R. (2003b). Conservatism in Accounting Part II: Evidence and Research Opportunities. Accounting Horizons, 17(4), 287-301.
Watts, R. L, and Zimmerman, J. L. (1978). Towards a Positive Theory of the Determination of Accounting Standards. The Accounting Review, 53(1), 112-134.
Watts, R. L., & Zimmerman, J. L. (1990). Positive Accounting Theory: A Ten Year Perspective. The Accounting Review, 65(1), 131-156.
Downloads
Published
How to Cite
Issue
Section
License
Authors who publish with this journal agree to the following terms:
- Authors retain the copyright and publishing right, and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) followingthe publication of the article, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).<a href="http://creativecommons.org/lice
