The Differences Cost of Equity Capital between Before and After Adoption of IFRS
Journal Title: Jurnal Keuangan dan Perbankan - Year 2017, Vol 21, Issue 4
Abstract
The objective of this study was to analyze and compare between the cost of equity capital between before and after the adoption of IFRS on Statement of Financial Accounting Standard Financial Instrument (PSAK) for banking companies listed in Indonesian Stock Exchange. The period on this study was 2008-2009 for before adoption and 2013-2014 for after adoption. Data on this study was secondary data such as annual financial reporting and share price. Cost of equity capital was measured using Ohlson Model. The sample in this study was banking companies listed in Indonesian Stock Exchange in 2008, 2009, 2013, and 2014. Selecting sample was by purposive sampling with specific criteria. Results of this study proved that the cost of equity capital was lower for after adoption of IFRS on Statement of Financial Accounting Standard Financial Instrument for banking companies listed in Indonesian Stock Exchange than before adoption. It meant that adoption IFRS could reduce the cost of equity capital. This result had an impact on reducing the non-performing loan, increasing the loan to deposit ratio, and increasing net interest margin.
Authors and Affiliations
I Putu Sugiartha Sanjaya, May Hosiani Br. Barus
Keywords
Related Articles
- EP ID EP418366
- DOI -
- Views 110
- Downloads 0
The determinant factors of efficiency on Islamic banking and conventional banking in Indonesia
As intermediary institutions, conventional banks have larger amount of loans to third party funds than of Sharia banks. Thus, the bank needs a performance appraisal to measure banking operations through efficiency. We ex...
Determinants of capital adequacy ratio on banking industry: Evidence in Indonesia Stock Exchange
Capital adequacy ratio (CAR) is an important indicator of bank safety sustainability. Banks that can guarantee CAR means the bank has the power to resist the financial crisis, protecting the bank itself and funds from de...
The Influence of Voluntary Disclosure, Stock Beta, and Firms Size on Cost of Equity Capital
This study aimed to examine the effect of voluntary disclosure, stock beta, and firm size on the cost of equity capital in manufacturing companies in the period 2013-2015. This research used a purposive sampling method a...
Is Investment Policy Value-Enhancing through CSR Disclosure?
This study aims to analyze the effect of funding policy, dividend, and investment on firm value and the influence of corporate social responsibility (CSR) disclosure as moderating variable in the relationship between inv...
Perbandingan Pengelolaan Risiko Kredit Perbankan Syariah dan Perbankan Konvensional
This study aims to identify factors that can be used as indicators in reducing the incidence of credit risk in sharia banking and conventional banking. The variables that become observations include banking performance i...