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The Effect of Conservatism, Slack, Managerial Ability, and Uncertainty on Company Financial Performance

Author

Listed:
  • Eduard Ary Binsar Naibaho
  • Farah Margaretha Leon
  • Bahtiar Usman

Abstract

This study aims to investigate the role of debt financing in the relationship between conservatism, slack, managerial capability, uncertainty, and corporate financial performance. To evaluate this effect, an exploratory study has been used on 382 samples of all sectors, except finance, listed on the ASEAN 5 for 21 years. Panel data regression with a fixed effect method is used to test the company's financial performance. The study results indicate that conservatism and available slack positively affect a company's financial performance. Conversely, recoverable slack and macroeconomic uncertainty negatively affect a company's financial performance. This paper contributes to the literature by advancing knowledge about accounting conservatism, organization slack, and company financial performance relationships over time, which have been scarcely studied. Â JEL classification numbers: M410, G300, G100,

Suggested Citation

  • Eduard Ary Binsar Naibaho & Farah Margaretha Leon & Bahtiar Usman, 2025. "The Effect of Conservatism, Slack, Managerial Ability, and Uncertainty on Company Financial Performance," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 15(1), pages 1-3.
    • Handle: RePEc:spt:apfiba:v:15:y:2025:i:1:f:15_1_3
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