PENGUJIAN ATAS DEBT/EQUITY HYPOTHESIS DAN SIZE HYPOTHESIS TERHADAP PEMILIHAN METODE PENYUSUTAN ASSET TETAP
Abstract: This study aims to
examine the debt / equity hypothesis and hypothesis size (political cost
hypothesis) with a focus on fixed asset depreciation accounting method selected
companies. Debt / equity hypothesis states that if the debt / equity ratio of a
company is getting higher, then chances are the company to choose accounting
methods that increase profitability also increased (Watts and Zimmerman, 1986).
This study uses debt to equity ratio and interest coverage ratio as proxy variables
to test the debt / equity hypothesis. While the size hypothesis states that the
larger the company, the managers the possibility to choose accounting methods
that reduce profits is also higher (Watts and Zimmerman, 1986). This study uses
total assets and net income as proxy variables for company size. This study
uses a logit regression to test the hypothesis. The total sample of the study
was 108 company's financial statements for the year ended December 31, 2004.
The results show that the debt / equity hypothesis (the interest coverage ratio
as a proxy variable), and the size hypothesis (with total assets as a proxy
variable) proved. Overall, the test results are consistent with previous
studies.
Penulis: Yosefa Sayekti
Kode Jurnal: jpakuntansidd130786
