Authors : Yen Sun and Nuraini Sari
Abstract: This research aims to investigate the quality of accounting information on the period before and after the full convergence IFRS in Indonesia. This study employs value relevance as the proxy of the quality of accounting information. Hence, the hypothesis of the research is whether the full convergence of IFRS improves the value relevance in Indonesia. An empirical analysis carried out on a sample of 247 firms with 2 years observations for first analysis and 4 years observations for second part of analysis. Ohlson price model has been employed to tackle the analysis. Results affirm the relative value relevance on earnings increase but not on book value. Then, there is overall decrease in the value relevance under IFRS.
Yen Sun and Nuraini Sari, 2016. Value Relevance of Accounting Information: Evidence from Indonesia. The Social Sciences, 11: 7568-7573.