Accounting Conservatism: The Effect of Investment Opportunity Set, Firm Size, and Debt Covenant

This study aims to analyze the effect of investment opportunity set, firm size, and debt covenant on accounting conservatism in industrial sector companies in the Indonesian Stock Exchange. This research method uses a quantitative approach with an associative research form. Data collection was done through documentary studies in the form of secondary data. The population of this study consisted of 66 industrial sector companies on the Indonesian stock exchange from 2019 to 2023. The research sample was obtained through the purposive sampling method of 41 companies. The data analysis is a multiple linear regression analysis using SPSS version 26 as the data processing tool. The results showed that investment opportunity set and firm size have no effect on accounting conservatism. Meanwhile, debt covenants have a positive impact on accounting conservatism. This research suggests analyzing other factors that may affect conservatism, such as corporate governance, industry type, or economic conditions.