IDEAS home Printed from https://ideas.repec.org/a/taf/oabmxx/v10y2023i1p2170520.html
   My bibliography  Save this article

IFRS adoption, stock price synchronicity and firm-specific information in Indonesia stock market

Author

Listed:
  • Dwi Astuti Rosmianingrum
  • Nor Farizal Mohammed
  • Imbarine Bujang
  • Lianny Leo

Abstract

This is the first study to explore the impact of Indonesia’s adoption of International Financial Reporting Standards (IFRS) on information flow and stock price informativeness throughout the pre-IFRS (2007–2011), transition (2012–2014), and post-IFRS (2015–2019) adoption periods, as determined by stock price synchronicity (SYNCH). This study examines if IFRS has reduced Indonesia’s SYNCH. The empirical data show that the mean value of SYNCH was negative for each of the 13 years investigated in this study, with the post-IFRS period having the lowest value. After that, SYNCH values steadily recovered. This study used panel data regression to objectively examine the relationship between a variety of independent variables and SYNCH. This research found that requiring the adoption of IFRS will first boost the flow of private information (firm-specific information) into stock price formation and eventually reduce the surprise impact of future disclosed information. This study also contributes new knowledge by offering proof of the effects of IFRS adoption and helping standard-setters in weighing the pros and disadvantages of their choices to keep implementing IFRS in Indonesia.

Suggested Citation

  • Dwi Astuti Rosmianingrum & Nor Farizal Mohammed & Imbarine Bujang & Lianny Leo, 2023. "IFRS adoption, stock price synchronicity and firm-specific information in Indonesia stock market," Cogent Business & Management, Taylor & Francis Journals, vol. 10(1), pages 2170520-217, December.
    • Handle: RePEc:taf:oabmxx:v:10:y:2023:i:1:p:2170520
    DOI: 10.1080/23311975.2023.2170520
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23311975.2023.2170520
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23311975.2023.2170520?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammd Istan, 2024. "Analysis of the Influence of Assets Structure, Earning Volatility, and Financial Flexibility on Capital Structure and Corporate Performance in Manufacturing Sector Companies on the IDX," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 49-65.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oabmxx:v:10:y:2023:i:1:p:2170520. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://cogentoa.tandfonline.com/OABM20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.