THE RELATIONSHIP OF COMPANY LIFE CYCLE TO FINANCIAL STATEMENT COMPARABILITY MODERATED BY INFORMATION ASYMMETRY

Abstrak

This research aims to examine the relationship between the company life cycle and the comparability of financial reports which is moderated by information asymmetry. The sample consist of non-financial companies listed on the Indonesia Stock Exchange for the 2016-2022 period. The data were obtained from the company’s annual reports and from  Thomsonreuters. The total number of companies sampled are 219 companies. The results showed that companies in the introduction, growth, and mature stages, had a higher level of financial report comparability, while companies in the decline and shake-out stages had a lower level of financial report comparability. Our findings also suggest that information asymmetry weakens the relationship between firm life cycle stage and financial report comparability. This means that when a company is in the mature life cycle stage, it has higher comparability than other life cycle stages, but the relationship between the company's position in its life cycle stage is weakened by the high asymmetry value.