ARTÍCULO
TITULO

International Financial Reporting Standards Convergence and Quality of Accounting Information: Evidence from Indonesia

Hasyyati Yusrina    
Mukhtaruddin Mukhtaruddin    
Luk Luk Fuadah    
Zunaidah Sulong    

Resumen

The International Financial Reporting Standards (IFRS) initiated by International Accounting Standard Board (IASB) 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 (GAAP) 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 to 2014, to include pre-IFRS (2009 to 2011) and post-IFRS period (2012 to 2014). The data is analyzed using multiple regression technique by using the pooled least square method. 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 (EPS), book value per share (BVPS) 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.Keywords: IFRS Adoption, Earning Quality, Earning per Share, Book Value per ShareJEL Classifications: M41, G11

 Artículos similares

       
 
Ana Isabel Morais and Inês Pinto    
This paper examines whether the level of enforcement shapes the complexity in accounting standards. First, in order to identify the level of complexity in accounting standards, we calculated a new measure that conceptualizes accounting complexity based o... ver más

 
Happiness Kilombele, Shiferaw Feleke, Tahirou Abdoulaye, Steven Cole, Haruna Sekabira and Victor Manyong    
This study examined the determinants and impacts of mobile money (MM) usage on maize productivity and poverty likelihood (i.e., the probability of a household falling below the international poverty line at USD 1.9 per capita per day) in the Mbeya Region... ver más

 
Mduduzi Biyase, Talent Zwane, Precious Mncayi and Mokgadi Maleka    
While technological innovation and financial development are broadly credited as important drivers of economic growth of developed nations, their impact on inequality (especially in emerging economies) remains understudied. Thus, the objective of this st... ver más

 
Mosab I. Tabash, Umaid A. Sheikh, Ali Matar, Adel Ahmed and Dang Khoa Tran    
The existing literature has explained the causality flow from the exchange rates toward the stock market without explaining the role of the economic crisis in effecting this nexus. This study examines the role of the financial crisis in affecting the non... ver más

 
Fadi Shehab Shiyyab, Abdallah Bader Alzoubi, Qais Mohammad Obidat and Hashem Alshurafat    
This study determines to what extent Jordanian banks refer to and use artificial intelligence (AI) technologies in their operation process and examines the impact of AI-related terms disclosure on financial performance. Content analysis is used to analyz... ver más