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JRAK (Jurnal Riset Akuntansi Dan Keuangan)

Memperkaya Khazanah Keilmuan Akuntansi

« Volume 3 Nomor 3, Desember 2015

THE VALUE RELEVANCE OF INTERNATIONAL ACCOUNTING STANDARD IMPLEMENTATION AND AUDIT QUALITY

Hanifa Zulhaimi, R. Nelly Nur Apandi
Abstrak
The implementation of international accounting standards in Indonesia has
significantly affected financial reporting. It increases information relevance for
the investors because a fair value comprehensively represents assets and liabilities
of an entity as of the balance sheet date. However, this triggers polemics over the
value relevance of International Financial Reporting Standard (IFRS). This can be
seen from stock price decline. This study aims to find out the effect of net income
and other comprehensive income on stock price and to observe the effect of other
comprehensive income moderated by audit quality. Furthermore this study also
aims to find out the effect of the subjectivity of OCI components. Using a sample
of 79 companies, the writer analyzes 2014 financial statements derived from
Indonesia Stock Exchange. Based on the result, the predetermined hypotheses are
unable to prove. Net income is the only variable that affects stock return. Thus it
can be concluded that net income has a value relevance for the investors in
making economic decisions.

Kata kunci : Net Income, Other Comprehensive Income, Stock Price and Audit Quality

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