Lesmanaputri, Evilia and Feliana, Yie Ke and Subali, Stefanus Budy Widjaja (2022) The Effect Of Convergence To International Financial Accounting Standards On Information Asymmetries - Evidence From Indonesia Listed Companies 2015-2019. In: International Symposium on Management 19: Re-Creating the Future of Business in New Normal Age, 19-20 May 2022, Kuta, Bali.
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Abstract
Since 1994 Indonesian financial accounting standards have referred to International Accounting Standards/IAS (or International Financial Reporting Standards/IFRS start from 2001). Then, as G20 member commitment, Indonesia took a more serious step by developing the standards that were convergence to IFRS since 2009. A special breakthrough was made in 2015, the gap between the IFRS and Indonesian Financial Accounting Standards is only one year. Higher quality of accounting standards, higher quality of financial reporting information, as a result, it will decrease the information asymmetry in the capital market. The purpose of this study is to identify the effect of IFRS convergence on changes in information asymmetry. This study's sample consists of 725 companies listed on the Indonesia Stock Exchange between 2015 and 2019 across industries. The cost of capital is used as a proxy for information asymmetry. This study found that IFRS convergence has no significant effect on changes in information asymmetry. Market control variables, i.e. inflation rate and market rate of return also have no significant effect on changes in information asymmetry. However, the firm-specific control variables, i.e. firm size, leverage, and ROA have a significant positive effect on information asymmetry, while beta has a significant negative effect. It argues that Indonesian investors could not make difference in the changes in the quality of financial reporting.
| Item Type: | Conference or Workshop Item (Speech) |
|---|---|
| Uncontrolled Keywords: | IFRS; information asymmetry; cost of capital; Indonesia Stock Exchange |
| 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: | 25 Feb 2022 07:52 |
| Last Modified: | 25 Feb 2022 07:52 |
| URI: | http://repository.ubaya.ac.id/id/eprint/41401 |
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