The Impact of New Accounting Standard: Financial Performance Differences and their Market Reaction

Aims: This study aims to provide the differences in financial performance, before and after implementation of PSAK 73 and its effect on the market reaction of infrastructure, transportation, and logistics companies listed on the Indonesia Stock Exchange (IDX).

Study Design: This study using the quantiative descriptive method.

Place and Duration of Study: Indonesia Stock Exchange (IDX) and Yahoo Finance, Period 2019-2020

Methodology: This Study using quantitative data with secondary data from financial statement. The population of this study are infrastructure, transportation, and logistics companies listed on the IDX in 2019 – 2020 with a sample of 56 companies. In this study, data analysis was carried out in two stages using the Paired Sample T-Test to see differences in financial performance and to see the effect on market reactions using IBM SPSS.

Results: Based on the results of the study using the Paired Sample T-Test, it shows that there is a significant difference in the Debt to Asset Ratio (DAR) and Return on Assets (ROA) before and after implementation of PSAK 73, but there is no significant difference in Total Asset Turnover (TAT). Meanwhile, based on the results of multiple linear regression, it shows that after the implementation of PSAK 73 TAT has an effect on market reaction, while DAR and ROA have no effect.

Conclusion: There is a significant difference in DAR and ROA before and after implementation PSAK 73, but not for TAT. There is a positive effect on TAT on market reaction after implementation PSAK 73, but not for DAR and ROA.