Corporate Governance Mechanism, Political Connection, and Accounting Conservatism: Evidence from Indonesia

This study aims to see the effect of corporate governance mechanisms, political
connections, and accounting conservatism in Indonesia, using the moderating variable
firm size. The samples used in this study amounted to 137 manufacturing companies for
four years from 2019 to 2022, with 548 data. The results of this study indicate that all
hypotheses are accepted. The independent commissioner, audit committee, and
institutional ownership variables positively affect while political connections and firm
size hurt accounting conservatism. Furthermore, the moderating variable's measurement
shows that the two equations show that firm size strengthens the relationship between
corporate governance mechanisms and strengthens the relationship of political
connections to accounting conservatism.