IFRS Accounting Disadvantages

CHAPTER 4
RESULTS AND ANALYSIS
The study to analyse the influence of IFRS adoption to the value relevance of accounting information is done by regressing the Ohlson Price Model. In conducting the analysis, 4 yearly data sets have been prepared in the year of 2010, 2011, 2012, and 2013. There are 4 data sets to be run as cross-sectional data and 1 additional data set aggregating the four as a panel data. The study is done statistically using SPSS.
Table 4.1 List of Data Set
Set Data Quantity Type Regression Model 1 2 3 4
1 2010 247 Cross-sectional Data   
2 2011 247 Cross-sectional Data   
3 2012 247 Cross-sectional Data   
4 2013 247 Cross-sectional Data   
5 2010, 2011,
2012, 2013 988 Panel Data 
In using the panel data, there are some advantages of panel data compared to pure cross-sectional or pure time-series data to be noted. It is important to understand the advantages as it may affect the analysis of the study. Baltagi (1995) as cited by Gujarati (2008) stated the advantages as follows: Panel data bound to give heterogeneity in units related to individuals, firms, states, countries, etc., over time. Panel data gives “more informative” data by combining time series of cross-section observations. It gives less collinearity among variables, more degrees of freedom and more efficiency. Panel data are better suited to study the dynamics of change by studying the repeated cross section of observations. Panel data can better detect and measure