Preferencje help
Widoczny [Schowaj] Abstrakt
Liczba wyników
2018 | 11 | nr 3 | 176--190
Tytuł artykułu

Information Asymmetry and Accounting Conservatism: Does Analyst Coverage Moderate the Results?

Treść / Zawartość
Warianty tytułu
Języki publikacji
This study aims to examine the effect of information asymmetry on accounting conservatism moderated by analyst coverage. Net assets are measured to determine accounting conservatism. Information asymmetry is measured with the bid-ask spread, whereas analyst coverage is calculated using a proxy of analyst following. The sample in this research consists of manufacturing companies listed on the Indonesia Stock Exchange from 2010 to 2014. Data are gathered using purposive random sampling method, and the financial statement reports of 124 companies are selected. Regression test results are consistent with the hypothesis, that is, a positive correlation exists between information asymmetry and accounting conservatism. Additional evidence shows that the level of analyst coverage affects the relationship between information asymmetry and accounting conservatism. A high level of analyst coverage reduces the level of information asymmetry and decreases that of conservatism in financial statements. (original abstract)
Opis fizyczny
  • Universitas Darma Persada, Indonesia
  • Universitas Sebelas Maret, Indonesia
  • Universitas Pasundan, Indonesia
  • Ahmed, A. S., & Duellman, S. (2007). Accounting Conservatism and Board of Director Characteristics: An Empirical Analysis. Journal of Accounting and Economics, 43(2-3), 411-437.
  • Ball, R., Robin, A., & Sadka, G. (2008). Is Financial Reporting Shaped by Equity Markets or By Debt Markets? An International Study of Timeliness and Conservatism. Review of Accounting Studies, 13(2-3), 168-205.
  • Basu, S. (1997). The Conservatism Principle and the Asymmetric Timeliness of Earnings. Journal of Accounting and Economics, 24(1), 3-37.
  • Beaver, W. H., & Ryan, S. G. (2000). Biases and Lags in Book Value and Their Effects on the Ability of the Book-to-Market Ratio to Predict Book Return on Equity. Journal of Accounting Research, 38(1), 127-148.
  • Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling Theory: A Review and Assessment. Journal of Management, 37(1), 39-67.
  • Gao, H., Darroch, J., Mather, D., & MacGregor, A. (2008). Signaling Corporate Strategy in IPO Communication: A Study of Biotechnology IPOs on the NASDAQ. Journal of Business Communication, 45(1), 3-30.
  • García Lara, J. M., Osma, B. G., & Penalva, F. (2007). Board of Directors' Characteristics and Conditional Accounting Conservatism: Spanish Evidence. European Accounting Review, 16(4), 727-755.
  • Gaver, J. J., & Gaver, K. M. (1993). Additional Evidence on The Association Between the Investment Opportunity Set and Corporate Financing, Dividend, and Compensation Policies. Journal of Accounting and Economics, 16(1-3), 125-160.
  • Givoly, D., & Hayn, C. (2000). The Changing Time-Series Properties of Earnings, Cash Flows and Accruals: Has Financial Reporting Become More Conservative? Journal of Accounting and Economics, 29(3), 287-320.
  • Givoly, D., & Hayn, C. (2002). Rising Conservatism: Implications for Financial Analysis. Financial Analysts Journal, 58(1), 56-74.
  • Hamdan, A. M. M., Kukreja, G., Awwad, B. S. A., & Dergham, M. M. (2012). The Auditing Quality and Accounting Conservatism. International Management Review, 8(2), 33-50.
  • Hellman, N. (2008). Accounting Conservatism under IFRS. Accounting in Europe, 5(2), 71-100.
  • Holthausen, R. W., & Watts, R. L. (2001). The Relevance of The Value-Relevance Literature for Financial Accounting Standard Setting. Journal of Accounting and Economics, 31(1-3), 3-75.
  • Honggowati, S., Rahmawati, R., Aryani, Y. A., & Probohudono, A. N. (2017). Corporate Governance and Strategic Management Accounting Disclosure. Indonesian Journal of Sustainability Accounting and Management, 1(1), 23-30.
  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
  • Jones, C. M. (2002). A Century of Stock Market Liquidity and Trading Costs. SSRN Electronic Journal.
  • LaFond, R., & Watts, R. L. (2008). The Information Role of Conservatism. The Accounting Review, 83(2), 447-478.
  • Lo, E. W. (2005). Pengaruh Tingkat Kesulitan Keuangan Perusahaan terhadap Konservatisme Akuntansi. In Simposium Nasional Akuntansi 8. Solo.
  • Lobo, G. J., & Zhou, J. (2006). Did Conservatism in Financial Reporting Increase after the Sarbanes-Oxley Act? Initial Evidence. Accounting Horizons, 20(1), 57-73.
  • Manganaris, P., Floropoulos, J., & Smaragdi, I. (2011). Conservatism and Value Relevance: Evidence from the European Financial Sector. American Journal of Economics and Business Administration, 3(2), 254-264.
  • Ong, T. S., & Ng, P. S. (2018). The Effects of Share Repurchase Announcements on Returns in the Malaysia Stock Market. Indonesian Journal of Business Finance and Accounting, 1(1), 1-19.
  • Rahmawati, R. (2006). Pengaruh Asimetri Informasi pada Hubungan antara Regulasi Perbankan dan Manajemen Laba serta Dampaknya terhadap Kinerja Saham: Studi Empiris pada Industri Perbankan di Indonesia. Universitas Gadjah Mada.
  • Safitri, T. A. (2012). Asimetri Informasi dan Underpricing: Studi Empiris di Bursa Efek Indonesia. Universitas Gadjah Mada.
  • Scott, W. R. (2012). Financial Accounting Theory (6th ed.). Pearson, Inc.
  • Shi-yu, X., & Chang, L. (2008). A Theoretical Analysis of IPO Underpricing. China-USA Business Review, 7(4), 1-4.
  • Smith, C. W., & Watts, R. L. (1992). The Investment Opportunity Set and Corporate Financing, Dividend, and Compensation Policies. Journal of Financial Economics, 32(3), 263-292.
  • Srivastava, A., Sunder, S., & Tse, S. (2015). Timely Loss Recognition and Termination of Unprofitable Projects. China Journal of Accounting Research, 8(3), 147-167.
  • Stiglitz, J. E. (2002). Information and the Change in the Paradigm in Economics. American Economic Review, 92(3), 460-501.
  • Sun, J., & Liu, G. (2011). The Effect of Analyst Coverage on Accounting Conservatism. Managerial Finance, 37(1), 5-20.
  • Watts, R. L. (2003). Conservatism in Accounting Part I: Explanations and Implications. Accounting Horizons, 17(3), 207-221.
  • Widyaningsih, I. U., Gunardi, A., Rossi, M., & Rahmawati, R. (2017). Expropriation by the controlling shareholders on firm value in the context of Indonesia: corporate governance as moderating variable. International Journal of Managerial and Financial Accounting, 9(4), 322-337.
  • Yu, F. (Frank). (2008). Analyst Coverage and Earnings Management. Journal of Financial Economics, 88(2), 245-271.
  • Yu, M. (2010). Analyst Forecast Properties, Analyst Following and Governance Disclosures: A Global Perspective. Journal of International Accounting, Auditing and Taxation, 19(1), 1-15.
Typ dokumentu
Identyfikator YADDA

Zgłoszenie zostało wysłane

Zgłoszenie zostało wysłane

Musisz być zalogowany aby pisać komentarze.
JavaScript jest wyłączony w Twojej przeglądarce internetowej. Włącz go, a następnie odśwież stronę, aby móc w pełni z niej korzystać.