VINDA DEWI PRASETYANINGTIAS, 041013184 and Novrys Suhardianto, - (2020) The Seriousness in Applying Accounting Standards and the Cost of Capital. International Journal of Innovation, Creativity and Changes, 11 (9). pp. 103-120. ISSN pISSN: 2201-1315, eISSN: 2201-1323

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Abstract

Reporting incentives are factors that motivate public companies to apply accounting standards seriously, instead of superficial labelling. This study aimed to obtain evidence that investors reacted more positively toward serious accounting standards users. This study analysed the relationship between reporting incentives, which consisted of six proxies, i.e. firm size; debt ratio; ROA; growth opportunities; internationalisation; ownership concentration, and last the cost of capital by using multiple linear regressions. The data collected in this study was taken from the financial statements and daily stock price of companies listed on the Indonesia Stock Exchange, consisting of 214 samples from 2011-2012. The results of the analysis indicated that firm size, growth opportunities, internationalisation, and ownership concentration had a significant effect on the cost of capital. However, reporting incentives were not related to the cost of capital. Thus, it can be concluded that investors in the Indonesian capital market had no concern for the public companies’ seriousness of applying accounting standards.

Item Type:	Article
Uncontrolled Keywords:	Firm size, debt ratio, ROA, growth opportunities, internationalization, ownership concentration, reporting incentives, cost of capital.
Subjects:	H Social Sciences H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	04. Fakultas Ekonomi dan Bisnis > Akuntansi
Creators:	Creators NIM VINDA DEWI PRASETYANINGTIAS, 041013184 UNSPECIFIED Novrys Suhardianto, - NIDN0021058303
Depositing User:	Tn Sugeng Riyanto
Date Deposited:	14 Nov 2022 00:24
Last Modified:	14 Nov 2022 00:24
URI:	http://repository.unair.ac.id/id/eprint/118599
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