IFRS Convergence and Accounting Quality

Abstract

Purpose: This study aims to empirically prove the impacts of IFRS convergence on the quality of information. Methods: This study used non-finance companies listed on the Indonesian Stock Exchange as research samples. The total number of samples consisted of 181 companies with a total of 2,511 observations. The research hypotheses were examined using multiple linear regression. Findings: This study indicates that the implementation of IFRS convergence in Indonesia does not guarantee improvements in information quality. Therefore, strict regulation and good governance are needed to support the implementation of IFRS convergence. Limitation: The research samples were limited to Indonesian non-finance companies. Practical Implications: Company managers need to enforce regulations and strengthen internal and external governance mechanisms to improve the quality of information. Originality/Value: This study examines accounting quality using data from longer periods, precisely four years before the full adoption (2008-2011) and ten years after the full adoption (2012-2021).