THE VALUE RELEVANCE OF ACCOUNTING INFORMATION IN TRANSITION TO IAS/IFRS: THE CASE OF INDONESIA
ABSTRACT: The objective of
this research is to present some preliminary evidence for the information
content of earnings and book values during transition era to IAS/IFRS in
Indonesia, from 1994 to 2009. Sample of this research consists of firms listed
in Indonesian Stock exchange in which stock prices, earnings, and book values
are available for the study period 1994 to 2009. Data are divided into two
periods, namely 1995 to 2000 period and 2001 to 2009 period because there is no
or little adoption of IFRS by IIA during the first period. Data ate analyzed by
using multiple regressions. This research finds that value relevance of
earnings and equity book values is higher in the period of significant adoption
of IAS/IFRS than the period of little IAS/ IFRS adoption. This research also
finds that equity book values and earnings have value relevance when both
equity book values and earnings are positive. However, both equity book values
and earnings do not have value relevance when both equity book values and
earnings are negative.
Keywords: value relevance,
earnings, equity book value, IFRS
Penulis: Eko Widodo Lo
Kode Jurnal: jpmanajemendd120318
Pesan jurnal yang anda butuhkan disini.... >>> KLIK DISINI <<<
