Yusrina, Hasyyati and Mukhtaruddin, Mukhtaruddin and Fuadah, Luk Luk and sulong, zunaidah (2022) International Financial Reporting Standards Convergence and Quality of Accounting Information: Evidence from Indonesia (Similarity 23). Turnitin Universitas Sriwijaya, International Journal of Economics and Financial. (Submitted)
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Abstract
The International Financial Reporting Standards (IFRS) initiated by International Accounting Standard Board are principle-based standard that require extensive disclosure of financial statements and accounting information as compared to prior standard that is the generally accepted accounting principles to better reflect the overall quality of company’s performance. Therefore, the IFRS convergence is expected to improve the reliability of financial reporting by limiting opportunistic managerial discretion. The conjecture is the mandatory adoption of IFRS will reduce the managerial discretionary behaviors to engage in earnings management practices, thus improving earnings quality and value relevance of accounting quality information. High quality of accounting information in terms of earnings quality and value relevance can stimulate investors’ behavior in the stock market exchange. This study utilises a sample of 110 manufacturing sector companies for the years 2009-2014, to include pre-IFRS (2009-2011) and post-IFRS period (2012-2014). The data is analyzed using multiple regression technique by using the pooled least square mesthod. The results of earnings management model of the study indicate that there are significantly positive relationship between size and leverage on earnings management. Whereas, the level of gross fixed assets is found to have a significant negative effect on earnings management. While, value relevance model the result shows there are significantly positive relationship between earnings per share, book value per share and size. Whereas, the leverage is shows significantly negative effect to earnings management. Overall, this study provides evidence of effect of IFRS convergence on the quality of accounting information is increase in term of value relevance but decrease in term of earning management.
| Item Type: | Other |
|---|---|
| Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting |
| Divisions: | 01-Faculty of Economics > 62901-Accountant Profession (Profesi) |
| Depositing User: | Luk Luk Fuadah |
| Date Deposited: | 06 Apr 2022 05:08 |
| Last Modified: | 06 Apr 2022 05:08 |
| URI: | http://repository.unsri.ac.id/id/eprint/68040 |
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