Main Article Content

Meisy Meisy
Christina Dwi Astuti


This research aims to analyse and get an empirical evidence on the effect of life cycle and life cycle on accounting prudence with litigation risk as moderating variable. This study adds the litigation risk variable as a moderation variable, because litigation can cause a significant decrease in value in a company and the company will bear a large burden of demands from the litigation risk.The population in this study includes 105 financial companies listed on Indonesia Stock Exchange in 2011-2021. The sample was selected using purposive sampling method. Based on the predetermined criteria, a total of 665 unbalanced samples were obtained. Multiple linear regression analysis is used as the analytical technique. Analysis result shown that partially Life Cycle has negative effect on Accounting Prudence, Legal Expertise has no significant effect on Accounting Prudence, Litigation Risk weakens the relationship of Life Cycle on Accounting Prudence, Litigation Risk does not moderate the relationship of Legal Expertise on Accounting Prudence. This research brings objectives in the analysis and finds the effect of life cycle on prudence moderated by litigation risk in the company the financial sector during the 2011-2021 period which has been listed on the IDX. The recommendation for further research is to add other indicators to measure accounting prudence such as earnings/stock return measures so that they can be used as comparison material regarding the consistency of proxy use. Further researchers are also expected to add other factors that can affect accounting prudence such as conflicts of interest, company risk, political costs, and taxes.



Download data is not yet available.

Plum Analytics

Article Details



ACFE Indonesia. (2020). Survei Fraud Indonesia 2019. Indonesia Chapter, 53(9), 1–76.

Achyani, F., Lovita, & Putri, E. (2019). The Effect of Good Corporate Governance, Sales Growth, and Capital Intensity on Accounting Conservatism (Empirical Study on Manufacturing Companies Listed on the Indonesia Stock Exchange 2017-2019). Jurnal Riset Akuntansi dan Keuangan Indonesia, 6(3), 255–67.

Afriani, N., Zulpahmi, & Sumardi. (2019). Faktor-Faktor Yang Mempengaruhi Konservatisme Akuntansi. Jurnal Buana Akuntansi, 6(1), 40–56.

Andani, M., & Nurhayati, N. (2021). Pengaruh Ukuran Perusahan, Financial Distress, Resiko Litigasi Terhadap Konservatisme Akuntansi. Jurnal Dinamika Ekonomi¸ 14(1), 206–224.

Black, J., Ham, C., Kimbrough, M.D., & Yee, H.Y. (2018). Legal Expertise and the Role of Litigation Risk in Firms’ Conservatism Choices. SSRN Electronic Journal.

Dickinson, V. (2011). Cash Flow Patterns as a Proxy for Firm Life Cycle. The Accounting Review, 86(6), 1969–1994.

Efrilita, Y., Taqwa, S. (2019). Pengaruh Siklus Hidup Perusahaan terhadap Konservatisme Akuntansi. Jurnal Eksplorasi Akuntansi, 1(4), 1794-1809.

Ghozali, Imam. 2018. Aplikasi Analisis Multivariate dengan Program IBM SPSS 25. Badan Penerbit Universitas Diponegoro: Semarang

Gort, M., & Klepper, S. (1982). Time Paths In The Diffusion Of Product Innovations. The Economic Journal, 92(367), 630-653.

Heflin, F., Kim, M.P., Moon, J.R., & Pierce, S.R. (2021). Post-Litigation Reporting Conservatism. SSRN Journal.

Idrus, M., Fatimah, S., Mukhtar, A., & Salam, K.N. (2021). Examining the Factors Affecting Accounting Prudence. Jurnal Ilmiah Akuntansi. 5(1), 62-76.

Jensen, M.C., & Meckling, W.H. (1976). Racial diversity and its assymetry within and across hierarchical levels: The effect on financial performance. Human Relations, 72(10), 1671-1696.

Manchiraju, H., Pandey, V., & Subramanyam, K.R. (2020). Shareholder Litigation and Conservative Accounting : Evidence from Universal Demand Laws. SSRN Electronic Journal.

Murti, N.P.D.K., & Yuniarta, G.A. (2021). Pengaruh Intensitas Modal, Financial Distress, Insentif Pajak Dan Risiko Litigasi Terhadap Konservatisme Akuntansi Pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi Yang Terdaftar Di Bursa Efek Indonesia Tahun 2016-2020. Jurnal Akuntansi Profesi, 12(2), 460–471.

Putri, S., & Herawaty, V. (2020). Pengaruh Financial Distress , Risiko Litigasi , Firm Risk Terhadap Accounting Prudence Dengan Menggunakan Firm Size Sebagai Variabel Moderasi. Webinar Nasional Cendekiawan, 1, 5.13.1-5.13.14

Rahayu, S., Kusmuriyanto., Kiswanto., & Gunawan, D.I. (2018). Factors Influencing the Application of Accounting Conservatism in the Company. Internasional Conference on Econmics, Business, and Economic Education 2018, 180–97.

Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3): 355–374.

Watts, R.L., & Zimmerman, J.L. (1990). Positive Accounting Theory : A Ten Year Perspective. The Accounting Review, 65(1), 131-156