The level of conservatism and earnings management during IFRS adoption

Feliana, Yie Ke and Bagus, Jessica (2020) The level of conservatism and earnings management during IFRS adoption. Jurnal Keuangan dan Perbankan, 24 (1). pp. 53-67. ISSN Print: 1410-8089; Online ISSN: 2443-2687

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Abstract

We analysis to determine the level of conservatism and earnings management in the period of IFRS adoption in Indonesia. We used a quantitative approach and was tested using a different group test, i.e. Mann-Whitney U, ANOVA, and MANOVA. The object of this research is all manufacturing companies listed in Indonesia Stock Exchange (IDX) for the period of 2012-2017. The number of samples used in this research is 516 firm-years. Earnings management is measured by two approaches, i.e. accrual earnings management and real earnings management, while conservatism is measured by Basu Model. The level of conservatism and earnings management in this study focuses on after the IFRS adoption period. We reveal that IFRS adoption does not change accounting conservatism in financial statements. In addition, the greater adoption of IFRS is not able to reduce the level of overall earnings management both in accrual earnings management and real earnings management.

Item Type:	Article
Uncontrolled Keywords:	Accrual earnings management; Conservatism; IFRS; Real earnings management
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Faculty of Business and Economic > Department of Accounting
Depositing User:	Yie Ke Feliana 3193
Date Deposited:	13 Mar 2020 09:12
Last Modified:	04 Feb 2022 04:02
URI:	http://repository.ubaya.ac.id/id/eprint/37626

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