The impact of IFRS adoption on value relevance accounting information: Evidence from Indonesia

Abstract

The research objective is to examine the value relevance of accounting information during pre and post IFRS adoption of the banking industry in Indonesia. It utilizes an empirical analysis with panel data of 22 banks with a time period of 2 years before IFRS adoption and 4 years after the adoption. Ohlson's price model has been deployed to conduct the analysis. Results reveal that the value relevance on earnings increase after the IFRS adoption.