Jurnal of Management, Volume 11 No 3, July 2023 Available online http://jurnal.unpal.ac.id/index.php/jm 199 THE EFFECT OF COMPANY SIZE, TAX AND DEBT COVENANT ON ACCOUNTING CONSERVATISM IN COMPANIES FOOD AND BEVERAGES Dwi Wahyuni* 1 , Feronika Rosalin 2 , Echi Kurniati 3 , Dian Utari 4 , Ahmad Fikriyansyah 5 Mulia Darma Pratama College of Economics * 12345 dwi.wahuni2510@gmail.com 1 , feronikarosalin@gmail.com 2 , echi.kurniati.ek@gmail.com 3 , dianutari1976@gmail.com 4 , ahmadfikriyansyah@yahoo.com 5 Abstract: This study aims to determine whether company size, tax, and debt covenants have a partial and simultaneous effect on accounting conservatism in food and beverage subsector companies listed on the Indonesia Stock Exchange in 2017-2020. The data analysis method in this research is the descriptive method and verification method. The sampling method used was the purposive sampling method.The results of the study simultaneously prove that there is at least one independent variable (company size, tax and debt covenants) that affects accounting conservatism. The result of the analysis of the coefficient of determination (R2) or adjusted r square is 0.301 or 30.1%. In other words, the effect of independent variables (company size, taxes, and debt covenants) on the dependent variable (accounting conservatism) is 30.1% and the remaining 69.9% (100% - 30.1%) is influenced by other variables that are not investigated in this study. The result of the analysis of the coefficient of determination (R2) or adjusted r square is 0.301 or 30.1%. In other words, the effect of independent variables (company size, taxes, and debt covenants) on the dependent variable (accounting conservatism) is 30.1% and the remaining 69.9% (100% - 30.1%) is influenced by other variables that are not investigated in this study.In other words, the effect of independent variables (company size, taxes, and debt covenants) on the dependent variable (accounting conservatism) is 30.1% and the remaining 69.9% (100% - 30.1%) is influenced by other variables that are not investigated in this study. Keywords: Accounting Conservatism; Company Size; Debt Covenants; Taxes INTRODUCTION Competition between companies is currently getting tougher accompanied by rapid business development. Business development causes high challenges faced, so that, the higher the uncertainty that must be faced by the company. The company will do everything possible to survive. One way to see the performance of a company is from financial reports.(Kasmir, 2014:7). Financial reports are a form of accountability from company management for the management of all activities in it. In financial reporting, one of the main focuses is profit information which provides information about the performance of a company during a certain period. Conservatism is one of the basic concepts adopted in many financial accounting standards in various countries before the trend towards the use of IFRS (International Financial Reporting Standards) as a single accounting standard. The official definition of conservatism is contained in the Glossary of Concept Statement No. 2 of the FASB (Financial Accounting Statement Board), which defines conservatism as a prudent reaction in the face of uncertainty inherent in companies to try to ensure that uncertainties and risks in the business environment are enough to consider. The impact arising from the application of the concept of conservatism is the choice of method that leads to lower reporting of profits and assets or reporting of higher expenses and debts. With the concept of conservatism, the lender will receive protection against declining risk from a balance sheet that presents net assets and financial reports that report bad news in a timely manner. (Baridwan, 2010:14) states that conservatism is the attitude taken by accountants in the face of two or more alternatives in preparing financial statements.(Watts, 2003:24) states that