Dwi Astuti Rosmianingrum^1♣, Roshayani Arshad¹, Nor Farizal Mohammed¹ and Lianny Leo^2
1Accounting Research Institute, Universiti Teknologi MARA, Malaysia
²Faculty of Economics and Business, Universitas Indonesia, Indonesia

Publicly available information is mainly determined by firm-specific and market-wide information. When stock price changes are influenced more by firm-specific, the stock price synchronicity (SYNCH) is expected to be lower and vice versa. Financial reporting under the IFRS Standards is considered to have a higher quality than financial statements prepared under national accounting standards (GAAP). One of the pillars of good corporate governance is the existence of an effective internal mechanism such as board characteristics. This study examined the relationship between SYNCH and managerial ownership and board characteristics which included board size and board independence during the most comprehensive period of IFRS adoption in Indonesia covering the periods of pre-IFRS, transition and post- IFRS adoption. Using firms listed in the Indonesia Stock Exchange from 2007-2019, panel data regression analysis showed significant decrease in SYNCH after the adoption of IFRS. Other findings suggest that management and supervisory functions of the boards can be disrupted if there is larger board, and the presence of an independent board is seen as ineffective in increasing informativeness of stock price.

Keywords: Stock Price Synchronicity, Managerial Ownership, Board Characteristics, IFRS Adoption

^♣Corresponding Author: Dwi Astuti Rosmianingrum, Accounting Research Institute, Level 12, Menara Sultan Abdul Aziz, 40450 Shah Alam, Selangor, Malaysia; Email: This email address is being protected from spambots. You need JavaScript enabled to view it. ; Tel: +60 3-5544 4920