| Each company is given the option to choose fixed assets depreciation method to be used. However, many independent variables that influence the company's decision in choosing fixed assets depreciation method, including namely; firm size, return on assets, and management compensation. Therefore, the research was conducted to analyze the effect of firm size, return on assets, and management compensation to the selection method of depreciation of fixed assets. This research uses secondary data from financial reports manufacturing companies who listed on the Indonesia Stock Exchange during 2009 to 2011. From the sample of 81 companies and for the research period is for 3 years, then a sample of 81 companies and 243 observations, the research data were analyzed using descriptive statistical analysis and binary logistic regression method. Based on these results, return on assets and management compensation proved to have an influence on the selection method of depreciation of fixed assets. Meanwhile, firm size does not have an influence on the selection method of depreciation of fixed assets. |