Proceedings of Global Business and Social Science Research Conference
11 - 13 May 2015, Grand Mirage Hotel, Bali, Indonesia, ISBN: 978-1-922069-75-7
The Impact of IIFRS Convergence on Accounting Information
Quality in Indonesia Stock Exchange
Meily Surianti
The objective of this research is to get empirical evidence that IFRS convergence in
Indonesia improve the accounting information quality. Most of previous studies show
that IFRS adoption improve the accounting information quality, while some studies
conducted in emerging market show that there is no significance influence of IFRS
adoption on accounting information quality. This research uses 388 number of
observations taken from annual financial reporting of 97 manufacturing companies
listed in Indonesia Stock Exchange. Indonesia Stock Exchange is classified as
emerging market. Measuring the accounting information quality as residuals from
current accruals to cash flow, the results show that there is no significance
differences of accounting information quality, before and after IFRS convergence.
This research also examine the accounting information quality using accrual based
earning management model, and the result show that earning management after
IFRS convergence is higher than before IFRS convergence. These results do not
meet the previous hypothesis.
Key Words: International Financial Reporting Standards, Accounting Information Quality
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Meily Surianti, Universitas Padjajaran, Bandung, Politeknik Negeri Medan