Consequences of New IFRS 16 on Firm's Managerial Decision Making and Firm's Value: A Mixed-Methods Study of Indonesia's Transportation and Logistics Sector

Indra Pratama; Ersa Tri Wahyuni; Thaddeus Ezekiel Krisnadi

doi:10.37680/ijief.v6i2.10233

Authors

Indra Pratama Swiss German University
Ersa Tri Wahyuni Universitas Padjadjaran
Thaddeus Ezekiel Krisnadi Universitas Padjadjaran

DOI:

https://doi.org/10.37680/ijief.v6i2.10233

Keywords:

IFRS 16, Financial Ratios, Lease Liabilities, Mixed Methods, Tobin’s Q, Transport-Logistics

Abstract

Combining panel-data regression with an embedded qualitative case study, this study examines how the mandatory adoption of IFRS 16/PSAK 116 Leases affects financial ratios, lease liabilities, firm value, and managerial decision-making among Indonesian transport-logistics firms. The quantitative strand analyzes a four-year panel (2018–2021, 88 firm-year observations) drawn from 22 IDXTRANS-listed issuers, while the qualitative strand draws on semi-structured interviews and internal documentation at PT XYZ, a Japanese-invested forwarding company. Wilcoxon Signed-Rank tests show no statistically significant pre- to post-adoption change in the Current Ratio, Debt-to-Equity Ratio, Debt-to-Asset Ratio, ROA, or ROE (all p > 0.05). Panel regression confirms that IFRS 16 adoption significantly increases recognized lease liabilities (β = 0.9769; p < 0.001) and is associated with a modest but significant rise in Tobin's Q (β = 0.2128; p = 0.0011), suggesting investors reward the transparency gain rather than penalizing the higher recognized debt. The PT XYZ case study explains this apparent stability: management responded to the balance-sheet impact with a Rp 35 billion warehouse purchase (substituting ownership for leasing), tightened internal controls after a Rp 2.56 billion double-counting misstatement, and restructured accounting duties — actions consistent with both agency and stewardship motives. Integrating the two strands indicates that the sector-wide “zero effect” on financial ratios is not passive: it is the aggregate outcome of active, firm-level strategic adjustment. The study extends signaling-theory and agency/stewardship-theory explanations of accounting-standard adoption to an emerging-market, lease-intensive industry and offers practical guidance for management, auditors, and DSAK IAI on lease-transition governance.

References

Adams, J. C., Hayunga, D. K., Mansi, S., Reeb, D. M., & Verardi, V. (2019). Identifying and treating outliers in finance. Financial Management, 48(2), 345–384. https://doi.org/10.1111/fima.12269

Amrie, S., Elisabeth, M., & Trisnawati, N. (2023). Analysis of the impact of implementing PSAK 73 (IFRS 16) on the financial performance of transportation companies in Indonesia. Jurnal Pendidikan Akuntansi & Keuangan, 11(2), 122–134.

Baltagi, B. H. (2021). Econometric analysis of panel data (6th ed.). Wiley.

Belesis, N., Sorros, J., Karagiorgos, A., & Kousounadis, P. (2021). Cumulative effect of IFRS 15 and IFRS 16 on maritime company financial statements: A hypothetical case. SN Business & Economics, 1(3), Article 51. https://doi.org/10.1007/s43546-021-00043-y

Bohusová, H., Blahová, N., & Král, B. (2022). Lease capitalization and its impact on retail companies in the EU. Accounting Research Journal, 35(2), 210–233.

Chung, H. J. (2022). The effects of new accounting standards on firm value: The K-IFRS 1116 Lease. International Journal of Financial Studies, 10(3), 68. https://doi.org/10.3390/ijfs10030068

Creswell, J. W., & Plano Clark, V. L. (2018). Designing and conducting mixed methods research (3rd ed.). SAGE Publications.

Cumming, C., & Galt, H. (2021). The implementation impact of IFRS 16: Leases on JSE listed technology and telecommunication companies using a constructive capitalisation model. Journal of Accounting and Management, 2021(1), 58–73.

Donaldson, L., & Davis, J. H. (1991). Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of Management, 16(1), 49–64. https://doi.org/10.1177/031289629101600103

Fülbier, R. U., Silva, J. L., & Pferdehirt, M. H. (2008). Impact of lease capitalization on financial ratios of listed German companies. Schmalenbach Business Review, 60(2), 122–144.

Ikatan Akuntan Indonesia (IAI). (2024). Statement of Financial Accounting Standards (PSAK) 116: Leases.

IFRS Foundation. (2016). Effects analysis: IFRS 16 Leases. https://www.ifrs.org

Imhoff, E. A., Lipe, R. C., & Wright, D. W. (1991). Operating leases: Impact of constructive capitalization. Accounting Horizons, 5(1), 51–63.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X

Lopes, A. I., & Penela, D. (2025). The impact of IFRS 16 on lessees' financial information: A single-industry study. Advances in Accounting, 68, Article 100803. https://doi.org/10.1016/j.adiac.2024.100803

Mardani, I., Yuliani, A., & Sudirman, R. (2023). The effect of PSAK 73 implementation on changes in financial ratios in transportation companies listed on the IDX. Jurnal Pendidikan Akuntansi & Keuangan, 11(2), 101–115.

Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: An expanded sourcebook (2nd ed.). SAGE Publications.

Moleong, L. J. (2019). Metodologi penelitian kualitatif (Rev. ed.). Remaja Rosdakarya.

Morales-Díaz, J., & Zamora-Ramírez, C. (2018). The impact of IFRS 16 on key financial ratios: A new methodological approach. Accounting in Europe, 15(1), 1–33. https://doi.org/10.1080/17449480.2018.1433307

Nugroho, A., & Gantyowati, E. (2023). Effect of the new standard of leasing (PSAK 73) on firm value during the COVID-19 pandemic. Jurnal Akuntansi, 27(1), 45–60.

Ooi, S. C., Lim, C. C., & Boo, H. L. (2023). The financial impacts of lease capitalisation on an airline's financial reporting: A case study of AirAsia Group Berhad. Asian Journal of Accounting Perspectives, 16(1), 22–41.

Parle, G. (2018). Implications of the new accounting standard for leases (AASB 16) on key financial ratios: Evidence from the Australian aviation sector. Accounting Research Journal, 31(3), 409–425.

PricewaterhouseCoopers (PwC). (2016). A study on the impact of lease capitalisation: IFRS 16, the new leases standard. PwC.

Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010

Sugiyono. (2012). Metode penelitian kombinasi (mixed methods). Alfabeta.

Sugiyono. (2023). Metode penelitian kuantitatif, kualitatif, dan R&D (3rd ed.). Alfabeta.

Tobin, J. (1969). A general equilibrium approach to monetary theory. Journal of Money, Credit and Banking, 1(1), 15–29. https://doi.org/10.2307/1991374

Van Wyk, N., & Enslin, Y. (2025). The impact of IFRS 16 adoption on financial statements of listed South African mining companies. Cogent Business & Management, 12(1), Article 2450096. https://doi.org/10.1080/23311975.2025.2450096

Yin, R. K. (2018). Case study research and applications: Design and methods (6th ed.). SAGE Publications.

Zamora-Ramírez, C., & Morales-Díaz, J. (2018). Effects of IFRS 16 on key financial ratios of Spanish companies. Estudios de Economía Aplicada, 36(2), 385–406.