Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Comparative Value Relevance of Accounting Information in the IFRS Period Between Manufacturing Company and Financial Services Go Public in Indonesia Stock Exchange

Author(s): Rida Prihatni, Bambang Subroto, Erwin Saraswati, Bambang Purnomosidi

The purpose of this study is to examines the value relevance of accounting information between the manufacturing industry and the Financial Services on IFRS period of 2008 through 2014 and compares the results for both groups of sectors. The reason the researchers compare the two groups of sectors is to have different characteristics, the presentation of different financial statements, have different rules and some companies within the sector have first implemented IFRS and also includes both sectors are contributors of gross domestic product is quite large. This study uses the value of accounting profit, book value, and cash flow as a proxy for the value relevance of accounting information. This study uses a quantitative approach. The population of this research is a public company manufacturing and the financial services on the Indonesia Stock Exchange. The dependent variable of this research is the study uses the stock price and independent variable used in this study are earnings per share, book value per share, and total cash flow per share. Analysis of research data using linear regression. The results showed that accounting information such as earnings, book value and cash flow have value relevance fluctuates on the phase of adoption and implementation of IFRS however the value relevance has been increasing of earnings, book value, and cash flow in the implementation phase of IFRS compared early adoption phase of IFRS and then earnings have value relevance higher than book value of equity, and cash flow both two groups of manufacturing and financial services industries.