Accounting Conservatism, Capital Structure, And Financial Performance During And Post-Covid-19

Abstract

This research aims to examine the impact of accounting conservatism and capital structure on the financial performance of infrastructure companies listed on the Indonesia Stock Exchange during and after the COVID-19 pandemic. An associative quantitative approach was employed using multiple linear regression analysis, with purposive sampling applied to 19 selected companies out of 69 listed. During the pandemic, both variables showed a significant simultaneous impact on financial performance (Sig. = 0.004). Partially, accounting conservatism (Sig. = 0.191) had no significant impact, while capital structure (Sig. = 0.112) had a significant impact, with an R² value of 0.292. Post-pandemic results revealed a significant simultaneous impact (Sig. = 0.001), with accounting conservatism having a significant negative impact (Sig. < 0.001), while capital structure remained insignificant (Sig. = 0.995), and an R² value of 0.342. For the period 2020–2024, both variables showed a significant simultaneous impact, with accounting conservatism having a significant positive impact (Sig. = 0.048) and capital structure having a significant negative impact (Sig. = 0.088), with an R² value of 0.088. These findings are valuable for investors in assessing how financial reporting practices and funding structures influence company performance and highlight the importance of adaptive financial analysis in response to changing economic conditions.