<![CDATA[This study tests and analyzes the influence of accounting prudence on financial performance and compares accounting prudence and internal and external financial performances before and during the COVID-19 pandemic. The data source is secondary data obtained from financial reports published by Revinitif, Osiris, and the Indonesian Stock Exchange. Purposive sampling was used. The results show that accounting prudence negatively affects internal financial performance but positively impacts external financial performance. Additionally, there are differences in accounting prudence and internal and external financial performance before and during the COVID-19 pandemic. During the pandemic, companies tended to be more cautious in preparing financial statements, resulting in a decline in their internal and external performance. The principles of prudence and preparation of good financial statements are especially important for dealing with uncertainty and maintaining investor confidence. The distinguishing aspect of this study lies in its analysis of prudence before and during the COVID-19 pandemic, an area that has received limited attention to date. In line with IFRS convergence, the concept of prudence has replaced conservatism, which was previously the prevailing concept in accounting practice. This study contributes to the literature by integrating agency and signaling theory perspectives, showing how prudent reporting can mitigate agency conflicts and serve as a credible signal to investors. The findings have practical implications for managers and regulators in strengthening transparency, improving investor trust, and enhancing firm resilience during crises. Thus, prudence shapes financial outcomes and plays a strategic role in sustaining firm value under volatile conditions.]]>
