Retnoningrum Hidyah, Sukirman, Uswatun Khasanah, Kiswanto, Indra Pahala
The company's financial condition is influenced by several aspects. One of them is prudent management in managing finances. This study aims to examine the effect of conflicts of interest, company size, and audit quality on prudence. Furthermore, this study uses profitability as a moderating variable to provide a different perspective. The study population is companies in the consumer goods industry sector which are listed on the Indonesia Stock Exchange. Data collection techniques using documentation techniques. The results showed that conflicts of interest had a significant positive effect on prudence, company size had a significant negative effect on prudence, and audit quality had no significant effect on prudence. Furthermore, profitability moderates the influence of conflicts of interest and audit quality. However, profitability does not moderate the effect of company size on prudence. Hence, the management must concern on their financial statement in order to enhance company value. © 2019 by Advance Scientific Research. This is an open-access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)
Faculty of Economics, Universitas Negeri Semarang, Indonesia; Faculty of Economics, Universitas Negeri Jakarta, Indonesia
