Improvement of Accounting Value Relevance Post Convergence IFRS

Elly Astuti

2018

Abstract

The purpose of this study is to evaluate the increasing relevance of accounting values ​​after IFRS convergence in Indonesia. The research focused on banking companies in two stages of full adaptation, namely in 2012 for the first and 2015 stages for the second phase. The research method uses multiple linear regression and chow test follow-up tests to evaluate structural changes in the relevance of accounting values ​​during the adaptation period. The results of the study using price models found that after IFRS convergence in Indonesia there was an increase in the relevance of the value of accounting information in banking sector companies. But when testing is done with the return model, IFRS convergence has no effect. This condition indicates that investors in the banking sector companies pay more attention to the company's fundamental valuation for long-term investments rather than short-term capital gains. Increasing the relevance of values ​​after IFRS convergence with price models, indicates that the market responds positively to IFRS adaptation policies in Indonesia so as to strengthen the country's economic stability. Future research is expected to carry out testing using the proxy of earnings management and timeliness to represent the relevance of accounting information values.

Paper Citation

in Harvard Style

Astuti E. (2018). Improvement of Accounting Value Relevance Post Convergence IFRS.In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, ISBN 978-989-758-432-9, pages 995-1000. DOI: 10.5220/0009500409951000

in Bibtex Style

@conference{unicees18,
author={Elly Astuti},
title={Improvement of Accounting Value Relevance Post Convergence IFRS},
booktitle={Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,},
year={2018},
pages={995-1000},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009500409951000},
isbn={978-989-758-432-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,
TI - Improvement of Accounting Value Relevance Post Convergence IFRS
SN - 978-989-758-432-9
AU - Astuti E.
PY - 2018
SP - 995
EP - 1000
DO - 10.5220/0009500409951000