REAKSI PASAR TERHADAP PENERAPAN STANDAR AKUNTANSI INTERNASIONAL (IFRS) PADA PERUSAHAAN YANG GO PUBLIC DI BEI

Abstract

The purpose of this paper is to examine the impact of adoption of international accounting standard on earnings quality of Indonesia companies in the convergence process for IFRS using Average Abnormal Retur and Cumulative Average Abnormal Return. The examination is focused on the persistence and accrual quality model. High-quality financial reports provide investors with the information and confidence necessary to invest in the global capital markets. A high-quality set of accounting standards enables investors to receive suitable information while considering the reasonable costs of implementing those standards. The contribution of this paper, especially for policy maker, is to give the policy maker for the future direction in standard setting. This paper also verifies the difference between the IFRS and convergence of financial reporting in the local Indonesian companies separated by the choice of accounting standards in Indonesia.