Determinant Factors Affecting the Accounting Method Choices and Reported Profits of Big Industrial Companies in Indonesia

摘要

This study aims to find out the determinant factors affecting the choice of accounting methods and the reported profit of big industrial companies in Indonesia. The results showed: (1) Total assets of big industrial companies, DER and bonus managers simultaneously had a significant influence on the choice of Accounting Methods which increase profit of the companies. This was supported by Nagel R Square of 0.558 or it could be interpreted that the model could give an effect to change variations of the choice of accounting methods by 58.80%. (2) The debt of big industrial companies which is represented by debt to equity ratio has a significant effect on the choice of Accounting Methods. It means that the greater the company's debt, the greater the tendency of the company to select the accounting methods that increase reporting of company’s profit. (3) Big industrial companies that have a bonus managers have significant effect on the choice of the Accounting Method because the Wald test value is 59,356 2 or p-value 0,00 1.96 at (a = 0.05; k-1; Nk) or P value 0,000 t -table at (a= 0.05; N-k) or 33,642 1.96 (a= 0.05; N-k) or with a significance level of P value 0,000 0.05. This means that the greater the company's sales volume, the greater the company's profit will be.