Role of Corporate Governance in Increasing the Value Relevance of Earning and Fair Value Measurement of Non-Financial Asset in Indonesia Company
| Autor: | Ananta Dian Pratiwi, Sutrisno Sutrisno, Aulia Rahman |
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| Rok vydání: | 2019 |
| Předmět: |
Financial asset
business.industry Corporate governance earning corporate governance Regression analysis Accounting fair value measurement of nonfinancial assets lcsh:Social Sciences lcsh:H value relevance Stock exchange Fair value Accounting information system lcsh:H1-99 Business lcsh:Social sciences (General) Stock (geology) |
| Zdroj: | International Journal of Multicultural and Multireligious Understanding, Vol 6, Iss 1, Pp 91-100 (2019) |
| ISSN: | 2364-5369 |
| DOI: | 10.18415/ijmmu.v6i1.507 |
| Popis: | Accounting information is one of many informations that is used in making decisions by investors. Accounting information has value relevance when the information raises investor reactions, meaning that the information is used for decision making that affects stock prices. This study aimed to examine the value relevance of earning value and the fair value measurement of non-financial assets, along with the role of corporate governance in increasing the value relevance of both informations. This study used 142 companies listed on the Indonesia Stock Exchange during 2012-2017 as study samples. Moedaretd Regression Analysis was used as an analytical tool to test the relationship of study variables. The results showed that earning and the fair value measurement of non-financial assets had value relevance. Both of these informations are considered useful by investors for their decision making. Corporate governance was found to play a role in increasing the value relevance of earning and the fair value measurement of non-financial assets. Corporate governance is able to reduce agency conflicts that can cause information to be biased for investors. The existence of corporate governance provides assurance that informations has been fairly presented to investors, thereby increasing value relevance. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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