Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
0Activity
0 of .
Results for:
No results containing your search query
P. 1
022

022

Ratings: (0)|Views: 1 |Likes:
Published by downloadreferensi

More info:

Published by: downloadreferensi on May 10, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

05/10/2013

pdf

text

original

 
 
Fakultas Ekonomi Universitas Syiah KualaBanda Aceh, 21-22 Juli 2011
 
The Effect of Accounting Disclosure, Concentrated Ownership, and AccountingHarmonization to Earnings Quality: The Case of Asia PacificAlfon Inggrid CarolinaRatna WardhaniGraduate Program in Accounting Faculty of Economics, University of IndonesiaAbstract
This study aims to determine the influence of the level of disclosure and concentratedownership on the quality of earnings in the context of differences in the degree of localstandards to IFRS convergence between countries. This research was carried out againstthe companies listed on stock exchanges of Indonesia, Singapore, Hong Kong, and Australia. This study will use a multidimensional measure earnings quality using the fivemeasures of earnings quality which are earnings predictability, earnings management,earnings response coefficients, and conservatism. In general, this study found that higher levels of disclosure by companies, the high quality of earnings reported by companies. In thecontext of increasingly high demand for convergence of accounting standards to IFRS, thisstudy supports the role of convergence in improving the quality of corporate earnings. Theuse of accounting standards to IFRS convergence will strengthen the influence of the level of disclosure to earnings quality.
 
Key words: Disclosure, ownership, degree of convergence of local GAAP to IFRS.
1. Introduction
In the era of increasing levels of convergence of local accounting standards toInternational Financial Reporting Standards (IFRS), companies are required to performfinancial reporting based on international standards. Implementation of principles basedstandards in one side will make the company better able to apply the standards according totheir own characteristics, but on the other hand it will increase the possibility of using asubjective judgement, especially in the choice of accounting method, making estimation, andmake a valuation that requires certain assumptions. The subjective judgement sometimeused to generate the desired income (Lobo and Zhou, 2001). The consequences of suchsubjective judgement is that the company must improve disclosure of financial information
 
 
Fakultas Ekonomi Universitas Syiah KualaBanda Aceh, 21-22 Juli 2011
 
relating to the reasons for the selection of accounting methods, estimates and assumptionsused, and the potential corporate risk.The process of information disclosure by management plays an important role inovercoming the asymmetric information between owners as the principals and managementcompanies as agent in accordance with the proposed agency theory by Jensen andMeckling (1976). In addition, with different degrees of convergence of local accountingstandards with international accounting standards in each country, the level of disclosurereported by companies may vary among countries, so the consequences is that the qualityof corporate financial reporting will also vary. This will make financial information difficult tocompare and that may affect the reliability of information in decision-making by investors(Choi and Meek, 2005). Another factor that may affect the quality of financial reports is the ownershipstructure. Ownership structures which vary across the state often become an importantdeterminant in determining the quality of financial reporting. Mitton (2002) states that theconcentration of ownership will negatively impact company performance. This is evidentfrom studies of companies listed on stock exchanges of Indonesia, Malaysia, Korea,Philippines, and Thailand, which concluded that companies with higher levels of disclosureand higher level of concentration of public ownership will show better performance.In the context of differences in the degree of convergence of a country's accountingstandards to international accounting standards, research on the influence of the diversitylevel of disclosure and ownership structure on the quality of financial reporting is aninteresting issue to be investigated. This study aims to determine the influence of the level of disclosure and concentrated ownership on the quality of earnings in the context of differences in the degree of convergence of local standards to IFRS between countries. This
 
 
Fakultas Ekonomi Universitas Syiah KualaBanda Aceh, 21-22 Juli 2011
 
research was carried out against the companies listed on stock exchanges of Indonesia,Singapore, Hong Kong, and Australia. Selection of four states because of the difference isquite prominent among the four countries, especially in accounting practices and ownershipstructure. This study will use a multidimensional measure earnings quality using the fivemeasures of earnings quality which are earnings predictability, earnings management,earnings response coefficients, and conservatism.This research is expected to contribute to the development of theory, especiallytheories related to financial accounting such as agency theory and the use of IFRS as theinternationally accepted standards to improve the reliability of financial information and theprotection of investors. In addition, research is also useful to see the impact of concentratedownership on earnings quality, especially in some countries in Asia Pacific which has varietyof characteristics in the structure of corporate ownership. Ownership Structure in Asia areusually in the form of concentrated ownership is usually controlled by family firms (Rajan andZingales in Claessens and Fan, 2002). While the ownership structure of Australia is usuallya relative spread of ownership. Given the concentrated ownership, reporting of informationby the company becomes less transparent as the majority shareholder of the company'sstrong control and act in accordance with their interests (Fan and Wong, 2002). It is alsohoped that this research can contribute to the measurement of earnings quality which usemore comprehensive and multidimensional measurement.

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->