Bakti Setyadi, Bochari Rachman, Fitriasuri (2016) The Impact Of Ifrs Convergence On The Market Value Of Equityon Trade, Goods And Services Companies Listed On The Indonesia Stock Exchange
The development of multinational companies encourages the development of global capital markets and demands better disclosures in financial reporting. Therefore, the International Financial Reporting Standard (IFRS) issued by the International Accounting Standards Board (IASB) has been selected as the basis for the development of financial reporting standards through the convergence process. The changes of the financial standards provide options in determining the accounting policies used to calculate the company's value for investors. This researc h examines the impact of implementation of IFRS convergence on Market Value of Equity (MVE) and influencing determinants includes Earning per Share (EPS), Equity per Share (EQPS), Price per Share (PPS) by using paired t - test (paired - sample t test) between the data before and after the convergence of IFRS. The method used is a survey method by using secondary data with quantitative analysis in the sector of trade in goods and services listed on the Indonesian Stock Exchange. The result shows that the converg ence of IFRS did not have a significant impact on average changes of the value of EPS, EQPS, PPS and MVE. In other words, the convergence of IFRS had no impact on changes in the value of the said four variables. Furthermore, the correlation test result sho ws that the convergence of IFRS has relation to the value formation of Market Value of Equity and Price per Share after the implementation of IFRS. Instead, the convergence of IFRS did not contribute to the value formation of Earning per Share and Equity per Share after IFRS implementation.
K e y w ord s : Development , Convergence, IFRS, the Effects, the Value of the Company
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