PENGARUH IMPLEMENTASI IFRS DALAM INDEKS GRAY TERHADAP FINANCIAL DISCLOSURE

Abstract

This research aimed to examine the effect of IFRS implementation on gray index on financial disclosure. While,
gray index was refereed to leverage, profitability, firm size and stock portion during 2011, and 2015-2019. The
research was quantitative. Moreover, the population was Conventional Banking Companies which were listed on
IDX during 2011-2019. Furthermore, the data collection technique used purposive sampling. In line with, there
were 15 companies as sample. In addition, the data analysis technique used multiple linear regression with SPSS
25.The research result concluded gray index (leverage) had negative effect on financial disclosure. This meant,
creditors preferred directly to choose information in order to ensure management in keeping entrusted funds on
company. Meanwhile, gray index (profitability) did not affect financial disclosure. It meant, instead of having
some profits which did not increase significantly, companies with their overall asset had to make extensive
disclosure in its financial statements. On the other hand, gray index (firm size) had positive effect, as there was
transparent of financial statement disclosure. Likewise, gray index (stock portion) had positive effect on financial
disclosure. This happened since management had disclosures which in accordance with applicable IFRS
standard. Therefore, investors were interested in having investment in companies.
Keyword: financial disclosure, gray index of leverage, gray index of profitability, gray index of firm size, gray
index of stock portion