An empirical investigation on the impact of XBRL adoption on information asymmetry: Evidence from Europe

Liu, Chunhui; Luo, Xin; Wang, Fu Lee

doi:10.1016/j.dss.2016.09.004

Cited by 63 publications

(59 citation statements)

References 61 publications

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“…The adoption of digital reporting is said to improve and 'democratise' the accessibility and comparability of corporate reporting information thereby facilitating the free flow of capital (Liu et al, 2017;Yoon et al, 2011). The digitisation of accounting data also contributes to the analytic possibilities offered by 'big data' (Al-Htaybat and von Alberti-Alhtaybat, 2017; Bhimani and Willcocks, 2014;Roth, 2009).…”

Section: Introductionmentioning

confidence: 99%

“…The work of creating digital standards for the transmission of accounting data is a boundary activity that involves both accountants and IT experts. Increasingly, it is an important part of the production process by which reports are collectively constructed and the consumption process whereby such accounts travel to, and are used by, different audiences, including regulators and analysts (Liu et al, 2017;Ramin and Reiman, 2013).…”

Section: Introductionmentioning

confidence: 99%

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Sites of translation in digital reporting

Locke

Rowbottom

Troshani

2018

AAAJ

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Purpose The purpose of this paper is to analyse the process by which “analogue” corporate reports produced under a “paper paradigm” are translated into a machine language as required by digital reporting. The paper uses Austin and Searle’s linguistic speech act theory to examine how digitally translating reporting information into atomised data affects the infrastructure and practice of accounting. Design/methodology/approach Extensive interview and observation evidence focussed on the IFRS Foundation’s digital reporting project is analysed. An interpretive approach is informed by the concepts of L compatibility, illocution and perlocutionary acts which are drawn from speech act theory. Findings Two key sites of translation are identified. The first site concerns the translation of accounting standards, principles and practices into taxonomies for digital tagging. Controversies arise over the definition of accounting concepts in a site populated by accounting and IT-orientated experts. The second site of translation is in the routine production and dissemination of digital reports which impacts the L compatibility between preparers and users. Originality/value The paper highlights a previously unexplored field of translation in accounting and contributes a unique perspective that demonstrates that machine translation is no longer marginalised but is the “primary” text with effects on the infrastructure and practice of accounting. It extends speech act theory by applying it to the digital domain and in the context of translation between languages.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Sites of translation in digital reporting

Locke

Rowbottom

Troshani

2018

AAAJ

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“…Thus, for a sample of Korean listed companies, Yoon et al (Yoon et al, 2011) find a significant and negative association between XBRL adoption and information asymmetry suggesting that XBRL may reduce the information asymmetries in the capital market. Similarly, reduced information asymmetries are also reported by Liu et al, (2017) for a sample of European companies. Furthermore, XBRL adoption helps mitigate information risk and improve analysts forecast accuracy (Kim et al, 2012;Cho et al, 2014).…”

Section: Literature Reviewmentioning

confidence: 93%

Financial Reporting Practices of Italian SMEs: Why Do They Disclose More?

Panizzolo¹,

Fradeani²,

Metushi³

2017

IJDAR

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Abstract. From reporting periods ending on or after 31 December 2014, Italian unlisted companies filing their financial statements under the national GAAP have to deposit them to the Business Register in fully XBRL format. In particular, for companies submitting their financial statements in the abbreviated form, the mandatory taxonomy has offered the option to use in their notes also the tables of the standard one: this means that they can voluntarily provide more information than that normally required by the law. In this paper, we investigate this phenomenon focusing on its level and analyzing the variables explaining the reasons that push Italian SMEs to use, in their abbreviated financial statements, non-compulsory tables that are proper of the standard ones. Based on a large sample of 8,738 elements, we report surprising results: more than 80% of the abbreviated financial statements include at least one table proper of the standard ones, while on average they include seven. In addition, when analyzing the determinants of this phenomenon we find that the only relevant variable explaining the number of optional tables included in the abbreviated financial statements is the software used for preparing them.

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“…The role of the XBRL reporting format will be important, because XBRL has a significant impact in reducing information asymmetry and increasing the analysis estimates that companies can use to carry out planning (Liu et al, 2017). But there are other views from Harris & Morsfield (2012) that XBRL presents limitations on companies that can be relied on by investors in analyzing decision making.…”

Section: Financial Conditionsmentioning

confidence: 99%

Does XBRL Improve the Quality of Financial Statements in the Banking Industry?

Prasetyo

Apandi²

2019

J.Rev

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This study aims to determine the influence of the complexity of the banking business on the quality of financial statements that are moderated by the XBRL reporting form on the banking industry sector listed on the Indonesia Stock Exchange in 2017. The sample used was 43 banking companies from a total of 91 financial sector companies, based on purposive sampling. The complexity of the banking business in this study is measured by the level of complexity of the BOOK based on OJK regulations No. 6 / POJK.03 / 2016, the quality of financial statements is measured using non discretionary accruals and xbrl is measured by the use of the company in that year. In analyzing data, this study uses statistical tests of multiple regression analysis. Based on the calculation of multiple regression analysis with the help of Eviews 10 software, the relationship between the complexity of the banking business and the quality of financial statements is strengthened by the form of XBRL reporting

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An empirical investigation on the impact of XBRL adoption on information asymmetry: Evidence from Europe

Cited by 63 publications

References 61 publications

Sites of translation in digital reporting

Sites of translation in digital reporting

Financial Reporting Practices of Italian SMEs: Why Do They Disclose More?

Does XBRL Improve the Quality of Financial Statements in the Banking Industry?

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