Voluntary disclosure, conservative accounting, life cycle stages, and firm valuation

Lasdi, Lodovicus (2011) Voluntary disclosure, conservative accounting, life cycle stages, and firm valuation. In: Proceeding of The 12th Asian Academic Accounting Conference, 8 – 12 October 2011, Bali - Indonesia.


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Using the accounting valuation model by Feltham and Ohlson (1995), this study examines firm valuation attributable to (1) the joint effects of accounting conservatism and extent of voluntary disclosures on firm valuations and (2) the joint effects of accounting conservatism and life-cycle stages. Samples are publicly listed companies in Indonesia Stock Exchange (IDX) during 2000 to 2007. Sampling was done with purposive sampling method. There are as many as 177 sample firms used in testing hypothesis 2, 3, 4, and 5. However, this research only used 74 sample firms test hypothesis 1. This is based on the fact that very few public companies that publish annual reports consistently in the years of observation of this study. Before testing hypotheses, this study conducted an effective model selection research first. Results show all models of hypothesis testing using a more efficient predictive model, which is a fixed effect model. The classical assumption test results also show that all models pass the test of hypothesis testing classical assumptions. The results of this study give evidence that accounting conservatism, voluntary disclosure and life cycle stage affects the value relevance of accounting or non accounting information. The study also give evidence that market differently evaluate accounting information for firms in different life cycle stages and conservatism accounting affect the relationship between life cycle stage and company valuation. The study was driven from the equity valuation implications of the relationship between accounting conservatism and the operating assets and the relationship between operating assets and operating accruals in the Feltham & Ohlson model (1995).

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: conservatism accounting, voluntary disclosure, life cycle stages, dan market valuation
Subjects: Business
Divisions: Proceeding > Faculty of Business
Depositing User: Vincentius Widya Iswara
Date Deposited: 20 May 2015 02:51
Last Modified: 19 Jul 2016 03:15
URI: http://repository.wima.ac.id/id/eprint/2372

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