Enterprise Resource Planning Implementation and Accounting Information Quality

This study investigates the effect of ERP systemimplementation on accounting information quality of firms listedin Indonesian Stock Exchange. The accounting informationquality proxies are relevance and faithful representation.Relevance is measured with time lag between fiscal year-end andearnings announcements date, whereas faithful representation ismeasured with absolute discretionary accrual. The study findsthat the implementation of ERP system increase the absolutediscretionary accrual, thus the faithful representation of theaccounting information decreases. With respect to relevance,firms with incentive to increase the timeliness of earning releasedate experience a decrease in reporting lag after implementingERP system