Authors : Meily Surianti and Winwin Yadiati
Abstract: The purpose of this study is to obtain empirical evidence that the adoption of IFRS improves the quality of accounting information and simultaneously with the quality of accounting information, the adoption of IFRS lowers cost of equity capital, either directly or through information asymmetry on the Indonesia Stock Exchange. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange with a target population of companies announcing annual financial statements in 2010-2013. Samples are taken using a simple random method and the number of samples is calculated using the Slovin formula. The data used is secondary data and time series. Data are tested using path analysis. IFRS adoption is divided into two periods, the period before full adoption and the period after full adoption. The quality of accounting information is measured using an accrual quality model while information asymmetry is measured using bid ask spread. The results show that the full adoption of IFRS in Indonesia has not met the expected results. No. of IFRS adoption and the quality of accounting information has decreased cost of equity.
Meily Surianti and Winwin Yadiati, 2017. The Impact of IFRS Adoption, Quality of Accounting Information and Information Asymmetry on Cost of Equity (Analysis in Indonesia Stock Exchange as Emerging Market). International Business Management, 11: 2138-2150.