Institutional Repository | Satya Wacana Christian University: Perbandingan Metode Persediaan FIFO dan Metode Persediaan Rata-Rata dalam Mencerminkan Market Value Perusahaan
Abstract
Application of different inventory accounting methods would affect the
financial statements, which will be responded by investors, thus affecting the
market value of the company. This study is a replication of two previous studies
Anisa (2004) and Wiryadi and Supatmi (2008) which have different results. This
study wanted to retest the effect of the method of accounting for inventories on the
company's market value. The hypothesis of this study is the method of average
inventory accounting in the financial statements has more influence on the market
value of the company compared to the FIFO accounting method. Hypothesis test
is done using the test nonnested The discrimination approach and the discerning
approach. The population in this study is the companies listed in the Stock
Exchange in 2007 to 2009. The results of the 2 methods of testing hypotheses in
this study showed different results. In testing using the discrimination approach of
inventory accounting method more reflect the average market value than the
FIFO method of inventory accounting. In contrast to the approach discerninig
testing using the FIFO method of inventory accounting better reflect the
company's market value. With the weakness in discrimination approach method of
which models a simple ranking is only based on a model selection criterion and
provide the highest value of election measures of goodness of fit, then the
conclusions of this study using discerninig approach methods. So in this study
proves that the FIFO method of inventory accounting in the financial statements
more influence on the market value of the company compared with the method of
average inventory accounting.
Keywords : FIFO, Average, Market Value
Application of different inventory accounting methods would affect the
financial statements, which will be responded by investors, thus affecting the
market value of the company. This study is a replication of two previous studies
Anisa (2004) and Wiryadi and Supatmi (2008) which have different results. This
study wanted to retest the effect of the method of accounting for inventories on the
company's market value. The hypothesis of this study is the method of average
inventory accounting in the financial statements has more influence on the market
value of the company compared to the FIFO accounting method. Hypothesis test
is done using the test nonnested The discrimination approach and the discerning
approach. The population in this study is the companies listed in the Stock
Exchange in 2007 to 2009. The results of the 2 methods of testing hypotheses in
this study showed different results. In testing using the discrimination approach of
inventory accounting method more reflect the average market value than the
FIFO method of inventory accounting. In contrast to the approach discerninig
testing using the FIFO method of inventory accounting better reflect the
company's market value. With the weakness in discrimination approach method of
which models a simple ranking is only based on a model selection criterion and
provide the highest value of election measures of goodness of fit, then the
conclusions of this study using discerninig approach methods. So in this study
proves that the FIFO method of inventory accounting in the financial statements
more influence on the market value of the company compared with the method of
average inventory accounting.
Keywords : FIFO, Average, Market Value