Pengaruh Financial Distress terhadap Kualitas Laporan Keuangan dengan Pemediasi Prudence : Studi Empiris pada Industri Tekstil dan Garment yang Terdaftar di Bei

Abstract

Prudence accounting principles tend to make earnings more stable and more likely to report profits fluctuate so as to make profit is reported to be of poor quality. Prudence principle states that the accounting for the business to be fair and reasonable. There are many factors that affect prudence in accounting. The purpose of this study was to analyze the influence of the characteristics of financial difficulty levels against prudence and its impact on the quality of earnings. This study was conducted in causality and textile and garment industry listed in Indonesia Stock Exchange from 2010 to 2013 and using purposive sampling method of sampling, with the company's criteria consistent over years of research. This type of data is secondary data obtained from the annual financial statements. Research analysis of data used by multiple regression analysis that consists of 2 SLS (path analysis). The study found that in the textile and garment industry showed no level of media prudence in accounting. The study found that in the textile and garment industry shows that based on partial regression, there is a significant positive effect between the Leverage Ratio and Liquidity Ratio level of prudence with a significance level of less than 0.05, while the ratio of Profitability and Sales Growth rate no significant effect on prudence. ANOVA test shows that simultaneously all independent variables have a significant effect jointly to the level of prudence of accounting in the company's annual report. Prudence affect the predictability of earnings because management is arranged so that it can accelerate gains in subsequent years