The Extent of Voluntary Disclosure Before and After IFRS Convergence in Indonesia

DOI

10.2991/icame-18.2019.3How to use a DOI?

Keywords

International Financial Reporting Standard (IFRS) Convergence, Voluntary Disclosure

Abstract

This research aims to prove empirical result whether there is a significant increase on the extent of voluntary disclosure after the IFRS convergence in Indonesia. Utilizing the manufacturing companies listed in Indonesian Stock Exchange (IDX) as the samples, this research selects two years before the IFRS convergence and two years after the IFRS convergence in Indonesia. Voluntary disclosure index is used to develop the score of the voluntary disclosure for each company. The index of voluntary disclosure was taken from Botosan (1997) and Meek (1995). The results show that there is a significant increase in the extent of voluntary disclosure after the IFRS convergence in Indonesia. This finding implies that companies may be motivated to provide more voluntary disclosures with the objective of finding the necessary funds on better terms and carrying out effectively their expansion plan. It provides signals of lower earnings management and would subsequently reduce information uncertainty and satisfy investors’ information needs.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Totok Budisantoso
AU  - Maria Eliza Suryanto
PY  - 2019/08
DA  - 2019/08
TI  - The Extent of Voluntary Disclosure Before and After IFRS Convergence in Indonesia
BT  - Proceedings of the 3rd International Conference on Accounting, Management and Economics 2018 (ICAME 2018)
PB  - Atlantis Press
SP  - 27
EP  - 35
SN  - 2352-5428
UR  - https://doi.org/10.2991/icame-18.2019.3
DO  - 10.2991/icame-18.2019.3
ID  - Budisantoso2019/08
ER  -