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Abstract
Abstract
The purpose of this study is to investigate the role of IFRS application in economic welfare. Based on macroeconomics data from World Bank, the regression analysis was used to observe the relationship between IFRS and FDI. The IFRS fail to entice FDI flow in Indonesia. Unfortunately, the financial reporting quality has not increased yet by IFRS application. Furthermore, IFRS fail to lessen the risk of doing business in Indonesia. FDI investments are not intended for transferring technology and knowledge. To sum up, FDI potentially become a burden for the economic welfare.
Abstrak
Tujuan dari penelitian ini adalah untuk menyelidiki peran aplikasi IFRS dalam kesejahteraan ekonomi. Berdasarkan data makroekonomi dari Bank Dunia, analisis regresi digunakan untuk mengamati hubungan antara IFRS dan FDI. IFRS gagal untuk memikat aliran FDI di Indonesia. Sayangnya, kualitas pelaporan keuangan belum meningkat dengan aplikasi IFRS. Selanjutnya, IFRS gagal mengurangi risiko berbisnis di Indonesia. Investasi FDI tidak dimaksudkan untuk mentransfer teknologi dan pengetahuan. Singkatnya, FDI berpotensi menjadi beban bagi kesejahteraan ekonomi.
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Article Details
Copyright (c) 2023 Riesanti Edie Wijaya
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
- DAFTAR RUJUKAN
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- Arnold, P. J. (2012). The political economy of financial harmonization: The East Asian financial crisis and the rise of internation¬al accounting standards. Accounting, Or¬ganizations and society, 37(6), 361-381.
- Ball, R. (2006). International Financial Report¬ing Standards (IFRS): pros and cons for investors. Accounting and Business Re¬search, 36(sup1), 5-27.
- Barth, M. E. (2015). Financial accounting re¬search, practice, and financial account¬ability. Abacus, 51(4), 499-510.
- Barth, M. E., & Schipper, K. (2008). Financial reporting transparency. Journal of Ac¬counting, Auditing & Finance, 23(2), 173-190.
- Biswas, R. (2018). The Least Developed Coun¬tries: Opportunities and Challenges Emerging Markets Megatrends (pp. 167- 186): Springer.
- Bradbury, M. E. (2010). Commentary: discount rates in disarray–evidence on flawed goodwill impairment testing. Australian Accounting Review, 20(3), 313-316.
- Colen, L., Maertens, M., & Swinnen, J. (2009). Foreign direct investment as an engine for economic growth and human devel¬opment: a review of the arguments and empirical evidence. Hum. Rts. & Int’l Le¬gal Discourse, 3, 177.
- De Franco, G., Kothari, S. P., & Verdi, R. S. (2011). The benefits of financial state¬ment comparability. Journal of Account¬ing Research, 49(4), 895-931.
- Dreher, A. (2006). Does globalization affect growth? Evidence from a new index of globalization. Applied economics, 38(10), 1091-1110.
- Efferin, S., & Rudiawarni, F. A. (2014). Me¬mahami Perilaku Stakeholders Indone¬sia Dalam Adopsi Ifrs: Tinjauan Aspek Kepentingan, Bahasa, Dan Budaya. Jur¬nal Akuntansi dan Keuangan Indonesia, 11(2), 138-164.
- Epstein, B. J., & Jermakowicz, E. K. (2010). WI¬LEY Interpretation and Application of International Financial Reporting Stan¬dards 2010: John Wiley & Sons.
- Gordon, L. A., Loeb, M. P., & Zhu, W. (2012). The impact of IFRS adoption on foreign direct investment. Journal of Accounting and Public Policy, 31(4), 374-398.
- Hamidah. (2014). Kebijakan Adopsi Internation¬al Financial Reporting Standards (IFRS) di Indonesia dalam Perspektif Ekologi Akuntansi. (Doctoral Degree (unpub¬lish)), Brawijaya University, Malang.
- Hansen, H., & Rand, J. (2006). On the causal links between FDI and growth in devel¬oping countries. World Economy, 29(1), 21-41.
- Hopper, T., Lassou, P., & Soobaroyen, T. (2017). Globalisation, accounting and develop¬ing countries. Critical Perspectives on Accounting, 43, 125-148.
- Ionas¸ cu, I., Ionas¸ cu, M., Olimid, L., & Artemisa Calu, D. (2007). An empirical evaluation of the costs of harmonizing Romanian accounting with international regulations (EU Directives and IAS/IFRS). Account¬ing in Europe, 4(2), 169-206.
- Irpan, H. M., Saad, R. M., Nor, A. H. S. M., Noor, A. H. M., & Ibrahim, N. (2016). Impact of foreign direct investment on the unem¬ployment rate in Malaysia. Paper pre¬sented at the Journal of Physics: Confer¬ence Series.
- Kim, J.-B., & Shi, H. (2012). IFRS reporting, firm-specific information flows, and in¬stitutional environments: International evidence. Review of Accounting Studies, 17(3), 474-517.
- Lema, R., & Lema, A. (2012). Technology trans¬fer? The rise of China and India in green technology sectors. Innovation and De¬velopment, 2(1), 23-44.
- Maradona, A. F., & Chand, P. (2018). The Path¬way of Transition to International Fi¬nancial Reporting Standards (IFRS) in Developing Countries: Evidence from Indonesia. Journal of International Ac-counting, Auditing and Taxation, 30, 57- 68.
- Márquez-Ramos, L. (2011). European accounting harmonization: Consequences of IFRS adoption on trade in goods and foreign direct investments. Emerging markets fi¬nance and trade, 47(sup4), 42-57.
- Mencinger, J. (2003). Does foreign direct invest¬ment always enhance economic growth? Kyklos, 56(4), 491-508.
- Nguyen, M. (2017). The Influence of FDI on an Economy As Overall in Vietnam (2006 – 2015).
- Nnadi, M., & Soobaroyen, T. (2015). Interna¬tional financial reporting standards and foreign direct investment: The case of Africa. Advances in Accounting, 31(2), 228-238.
- Nwaogu, U. G., & Ryan, M. J. (2015). FDI, foreign aid, remittance and economic growth in developing countries. Review of Development Economics, 19(1), 100- 115.
- Ramady, M. A. (2013). Political, economic and financial country risk: Springer.
- Reiter, S. L., & Steensma, H. K. (2010). Human development and foreign direct invest¬ment in developing countries: the influ¬ence of FDI policy and corruption. World development, 38(12), 1678-1691.
- Sauvant, K. P., & Mallampally, P. (2015). Poli¬cy options for promoting foreign direct investment in the least developed coun¬tries. Transnational Corporations Re¬view, 7(3), 237-268.
- Sengupta, P., & Puri, R. (2018). Exploration of Relationship between FDI and GDP: A Comparison between India and Its Neighbouring Countries. Global Busi¬ness Review, 0972150918760026.
- Subramanyam, K. R. (2014). Financial State¬ment Analysis (Eleventh edition ed.). New York: McGraw-Hill Education.
- Suyanto, & Salim, R. (2013). Foreign direct in¬vestment spillovers and technical effi¬ciency in the Indonesian pharmaceutical sector: firm level evidence. Applied Eco¬nomics, 45(3), 383-395.
- Wang, C. (2014). Accounting standards harmoni¬zation and financial statement compara¬bility: Evidence from transnational infor¬mation transfer. Journal of Accounting Research, 52(4), 955-992.
- Wiyani, N. T. (2012). Standarisasi, Harmonisasi, dan Konvergensi IFRS. Makalah Akun¬tansi
References
DAFTAR RUJUKAN
Aktar, I., & Ozturk, L. (2009). Can unemploy¬ment be cured by economic growth and foreign direct investment in Turkey. In¬ternational Research Journal of Finance and Economics, 27(2009), 204-211.
Alfaro, L., & Johnson, M. (2012). Foreign direct investment and growth The evidence and impact of financial globalization (pp. 299-309): Elsevier.
Arnold, P. J. (2012). The political economy of financial harmonization: The East Asian financial crisis and the rise of internation¬al accounting standards. Accounting, Or¬ganizations and society, 37(6), 361-381.
Ball, R. (2006). International Financial Report¬ing Standards (IFRS): pros and cons for investors. Accounting and Business Re¬search, 36(sup1), 5-27.
Barth, M. E. (2015). Financial accounting re¬search, practice, and financial account¬ability. Abacus, 51(4), 499-510.
Barth, M. E., & Schipper, K. (2008). Financial reporting transparency. Journal of Ac¬counting, Auditing & Finance, 23(2), 173-190.
Biswas, R. (2018). The Least Developed Coun¬tries: Opportunities and Challenges Emerging Markets Megatrends (pp. 167- 186): Springer.
Bradbury, M. E. (2010). Commentary: discount rates in disarray–evidence on flawed goodwill impairment testing. Australian Accounting Review, 20(3), 313-316.
Colen, L., Maertens, M., & Swinnen, J. (2009). Foreign direct investment as an engine for economic growth and human devel¬opment: a review of the arguments and empirical evidence. Hum. Rts. & Int’l Le¬gal Discourse, 3, 177.
De Franco, G., Kothari, S. P., & Verdi, R. S. (2011). The benefits of financial state¬ment comparability. Journal of Account¬ing Research, 49(4), 895-931.
Dreher, A. (2006). Does globalization affect growth? Evidence from a new index of globalization. Applied economics, 38(10), 1091-1110.
Efferin, S., & Rudiawarni, F. A. (2014). Me¬mahami Perilaku Stakeholders Indone¬sia Dalam Adopsi Ifrs: Tinjauan Aspek Kepentingan, Bahasa, Dan Budaya. Jur¬nal Akuntansi dan Keuangan Indonesia, 11(2), 138-164.
Epstein, B. J., & Jermakowicz, E. K. (2010). WI¬LEY Interpretation and Application of International Financial Reporting Stan¬dards 2010: John Wiley & Sons.
Gordon, L. A., Loeb, M. P., & Zhu, W. (2012). The impact of IFRS adoption on foreign direct investment. Journal of Accounting and Public Policy, 31(4), 374-398.
Hamidah. (2014). Kebijakan Adopsi Internation¬al Financial Reporting Standards (IFRS) di Indonesia dalam Perspektif Ekologi Akuntansi. (Doctoral Degree (unpub¬lish)), Brawijaya University, Malang.
Hansen, H., & Rand, J. (2006). On the causal links between FDI and growth in devel¬oping countries. World Economy, 29(1), 21-41.
Hopper, T., Lassou, P., & Soobaroyen, T. (2017). Globalisation, accounting and develop¬ing countries. Critical Perspectives on Accounting, 43, 125-148.
Ionas¸ cu, I., Ionas¸ cu, M., Olimid, L., & Artemisa Calu, D. (2007). An empirical evaluation of the costs of harmonizing Romanian accounting with international regulations (EU Directives and IAS/IFRS). Account¬ing in Europe, 4(2), 169-206.
Irpan, H. M., Saad, R. M., Nor, A. H. S. M., Noor, A. H. M., & Ibrahim, N. (2016). Impact of foreign direct investment on the unem¬ployment rate in Malaysia. Paper pre¬sented at the Journal of Physics: Confer¬ence Series.
Kim, J.-B., & Shi, H. (2012). IFRS reporting, firm-specific information flows, and in¬stitutional environments: International evidence. Review of Accounting Studies, 17(3), 474-517.
Lema, R., & Lema, A. (2012). Technology trans¬fer? The rise of China and India in green technology sectors. Innovation and De¬velopment, 2(1), 23-44.
Maradona, A. F., & Chand, P. (2018). The Path¬way of Transition to International Fi¬nancial Reporting Standards (IFRS) in Developing Countries: Evidence from Indonesia. Journal of International Ac-counting, Auditing and Taxation, 30, 57- 68.
Márquez-Ramos, L. (2011). European accounting harmonization: Consequences of IFRS adoption on trade in goods and foreign direct investments. Emerging markets fi¬nance and trade, 47(sup4), 42-57.
Mencinger, J. (2003). Does foreign direct invest¬ment always enhance economic growth? Kyklos, 56(4), 491-508.
Nguyen, M. (2017). The Influence of FDI on an Economy As Overall in Vietnam (2006 – 2015).
Nnadi, M., & Soobaroyen, T. (2015). Interna¬tional financial reporting standards and foreign direct investment: The case of Africa. Advances in Accounting, 31(2), 228-238.
Nwaogu, U. G., & Ryan, M. J. (2015). FDI, foreign aid, remittance and economic growth in developing countries. Review of Development Economics, 19(1), 100- 115.
Ramady, M. A. (2013). Political, economic and financial country risk: Springer.
Reiter, S. L., & Steensma, H. K. (2010). Human development and foreign direct invest¬ment in developing countries: the influ¬ence of FDI policy and corruption. World development, 38(12), 1678-1691.
Sauvant, K. P., & Mallampally, P. (2015). Poli¬cy options for promoting foreign direct investment in the least developed coun¬tries. Transnational Corporations Re¬view, 7(3), 237-268.
Sengupta, P., & Puri, R. (2018). Exploration of Relationship between FDI and GDP: A Comparison between India and Its Neighbouring Countries. Global Busi¬ness Review, 0972150918760026.
Subramanyam, K. R. (2014). Financial State¬ment Analysis (Eleventh edition ed.). New York: McGraw-Hill Education.
Suyanto, & Salim, R. (2013). Foreign direct in¬vestment spillovers and technical effi¬ciency in the Indonesian pharmaceutical sector: firm level evidence. Applied Eco¬nomics, 45(3), 383-395.
Wang, C. (2014). Accounting standards harmoni¬zation and financial statement compara¬bility: Evidence from transnational infor¬mation transfer. Journal of Accounting Research, 52(4), 955-992.
Wiyani, N. T. (2012). Standarisasi, Harmonisasi, dan Konvergensi IFRS. Makalah Akun¬tansi