SNA XII - AKPM 119

PSAK NO. 5 (REVISI): FAKTOR YANG MEMPENGARUHI PENGUNGKAPAN

DAN DAMPAKNYA TERHADAP FORWARD EARNING RESPONSE

COEFFICIENT

(FERC)

(Fakultas Ekonomi Universitas Indonesia)

Abstract

PSAK 5 (revised) on segment reporting have been enacted in Indonesia since January 2, 2002. Prior to this PSAK, segment information of a company and its subsidiary are presented only by the grouping of business segments. Under the PSAK revisions, presentation of segment information becomes more complicated where the company should present segment information in the forms of primary and secondary.

This study aims to determine the factors that influence the number of segments disclosed by a firm related to the issuance of PSAK 5 (revision). In addition, this study is also to investigate as to whether the adoption of PSAK 5 (revision) is able to increase the market ability to predict the firms’ future earning, as reflected in the forward earning response coefficient (FERC). The FERC is the association between current-year returns and nextyear earnings (stock price informativeness).

This study uses financial statement data of listed manufacturing companies in the Indonesian Stock Exchange where the PRE period is 2000-2001 and POST period is 2003-2004. This study found empirical evidence that the factors influencing the number of segments disclosure are size, complexity and competition. The study also proved that incremental effect occurs on FERC by increasing the number of segments disclosed in the POST period. In short, the application of PSAK 5 (revised) can increase the market’s ability to predict firms’ future earning. This is consistent with the purpose of applying PSAK 5 (revision) which is to help investors better understand the performance of a company and better assess the net cash flow of the future of a company.

Keywords: PSAK No. 5 (Revised 2000); Disclosure Of Segment; Forward Earning Response Coefficient.