Analysis of Value Relevance of Accounting Information During IFRS Period of 2008 –2014 at The Stock Exchange of Indonesia

Abstract

This study aims to provide evidence about the value relevance of accounting information in a period of convergence of IFRS (2008-2014). Theoretically, this study describes the value relevance theory, signal theory, and the theory of regulation on IFRS convergence phenomenon. The study population is the entire manufacturing and financial services that go public who reported financial statements for seven consecutive years on the Indonesia Stock Exchange starting from 2008 until 2014.The results showed that the value relevance of information earnings, book value, and cash flow in the period 2008-2014 IFRS convergence. Individually value relevance of earnings and book value information in the implementation phase of IFRS has a value relevance is higher than the early adoption phase of IFRS, but the value relevance of cash flow information in the implementation phase of IFRS has a value relevance is lower than the early adoption phase of IFRS