Research Article
Do the Institutional Factors Affect the Accounting information quality Post IFRS Adoption: Asian Countries Study
@INPROCEEDINGS{10.4108/eai.7-10-2021.2316227, author={Retno Yuni Nur Susilowati and Slamet Sugiri}, title={Do the Institutional Factors Affect the Accounting information quality Post IFRS Adoption: Asian Countries Study}, proceedings={Proceedings of the 4th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2021, 7 October 2021, Lampung, Indonesia}, publisher={EAI}, proceedings_a={ICEBE}, year={2022}, month={4}, keywords={divergence enforcement investor protection accrual quality value relevance earnings management}, doi={10.4108/eai.7-10-2021.2316227} }- Retno Yuni Nur Susilowati
Slamet Sugiri
Year: 2022
Do the Institutional Factors Affect the Accounting information quality Post IFRS Adoption: Asian Countries Study
ICEBE
EAI
DOI: 10.4108/eai.7-10-2021.2316227
Abstract
This study aims to investigate the effect of institutional factors (i.e., differences in national accounting standards with IFRS, enforcement of accounting and auditing standards, investor protection, and corporate governance) on the accounting information quality. We tested the hypotheses by multiple linear regression analysis, estimated on three measures of accounting information quality (i.e., accruals quality, value relevance, and earnings management). Statistically, the results show that H1 is supported on the dependent variable of earnings management but not for accrual quality and value relevance. H2 is not supported in all measures of accounting information quality (accrual quality, value relevance, and earnings management). The results show that statistically, H3 is supported for the dependent variable accruals quality and earnings management but not significant for the dependent variable value relevance. Finally, the results show that statistically, H4 is supported for the dependent variable of accrual quality but not for the other two dependent variables. The test results H1, H2, H3, and H4, are robust by controlling for country and company level variables (i.e., capital market developments, classification of developed/developing countries, legal system, company size, and sales growth.