The Effect of Investment Opportunity Set, Company Growth, and Debt Covenant on Accounting Conservatism in Consumer Goods Manufacturing Companies Listed on the Indonesia Stock Exchange (IDX) 2018-2021

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Multiple regression analysis reveals how debt covenants and company growth influence accounting conservatism in consumer goods firms.

Company growth negatively affects accounting conservatism, indicating a potential increase in risk-taking behaviors.
Debt covenants are shown to have a significant negative impact on accounting conservatism, highlighting its role in financial reporting.
Investment opportunity set does not statistically influence accounting conservatism, suggesting limited relevance in this context.
Employing agency theory, the study explores motivations behind financial reporting practices in consumer goods companies.

Mondhi et al. (2025) studied this question.

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