Several Factors Influence the Selection of the Companies Accounting Methods

Abstract

This study aims to find out the several factors influence the selection of The Companies accounting methods. The results showed: (1) Total assets of the companies, DER and bonus managers simultaneously had a significant influence on the selection of Accounting Methods This was supported by Nagel R Square of 0.602 or it could be interpreted that the model could give an influence to change variations of the selection of accounting methods by 60,20%. (2) The debt of the companies which is represented by debt to equity ratio has a significant influence on the selection of Accounting Methods. It means that the greater the company's debt, the greater the tendency of the company to select the accounting methods (3) The companies that have a bonus managers have significant influence on the selection of the Accounting Method, this is supported by the Wald test value is 59,356> 2 or p-value 0,00.

Keywords: asset; debt to equity ratio; accounting methods

JEL Classification: M41