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Effects of privatization and corporate governance on accounting conservatism in state‐owned enterprises
Author(s) -
Saleh Fadli Moh,
Furqan Andi Chairil,
Fontanella Amy,
Prasetyo Eko
Publication year - 2021
Publication title -
journal of public affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.221
H-Index - 20
eISSN - 1479-1854
pISSN - 1472-3891
DOI - 10.1002/pa.2671
Subject(s) - corporate governance , conservatism , business , accounting , state owned , government (linguistics) , order (exchange) , quality (philosophy) , sample (material) , market economy , economics , finance , politics , political science , linguistics , philosophy , chemistry , epistemology , chromatography , law
This study aims to analyze the effect of privatization (go public) and corporate governance on the level of accounting conservatism in state‐owned public sector enterprises (SOEs). Using a research sample of SOEs that have been privatized and not privatized in Indonesia in the period 2010–2014 or as many as 224 firm‐years, the results of this study indicate that although there is a tendency to increase accounting conservatism in SOEs, this is not solely due to privatization of SOEs, but more due to improved corporate governance in SOEs in Indonesia. Therefore, this study has implications for the Government and other parties involved in the management of SOEs, so that they will prioritize increasing the implementation of good governance rather than privatization, especially in order to improve the quality of financial reporting in SOEs in Indonesia.