The Effect of IFRS Implementation in The Gray Index : Leverage, Liquidity, Profitability, Solvency, and Portion of Public Share on Disclosure of Financial Statements

Abstract

This study aims to determine the effect of IFRS implementation on the disclosure of financial statements as proxied by the gray index. The variables studied in this study are the index of gray leverage, liquidity, profitability, solvency, and the share of public shares. While the disclosure of financial statements is measured by using the Wallace Index. This study uses quantitative methods with secondary data obtained from the IDX and the company's website. The research population is food & beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2016 - 2020 research year with a research sample of 60 data consisting of 12 (twelve) companies. The method for estimating the regression equation uses a fixed effect model. The results showed that the gray . index leverage, liquidity, profitability, and solvency have no effect on the disclosure of financial statements. While the gray index portion of public shares has a positive effect on the disclosure of financial statements.