PENGARUH PENERAPAN XBRL TERHADAP KETEPATAN WAKTU PELAPORAN KEUANGAN (Studi Empiris pada Indeks LQ45 di Bursa Efek Indonesia Tahun 2016-2018)

Abstract

This study aims to provide empirical evidence about the effect of XBRL implementation on the timeliness of financial reporting of public companies in Indonesia registered in the LQ45 index. The research method uses panel data with 99 observations from 2016 to 2018. The results show that the implementation ofXBRL has a positive and significant impact on the timeliness offinancial reporting, in contrast to the Debt to Equity ratio used to control company leverage has a positive andinsignificant impact on accuracy financial reporting time, as well as Return on Assets used to control the profitability of the company has no significant effect with a negative impact on the timeliness of financial reporting of public companies in Indonesia that are listed on the LQ45 index.

The Influence of XBRL Adoption on Financial Reporting Timeliness: Evidence from Indonesian Banking Industry

“…The XBRL format can be used to prepare an institution's information report (IDX, 2021). Rupang et al (2019) argue that there are several advantages for the companies using the XBRL format to report their finances. They can save costs through increased efficiency and processing capability and lower bookkeeping costs (Rupang et al, 2019).…”

“…Rupang et al (2019) argue that there are several advantages for the companies using the XBRL format to report their finances. They can save costs through increased efficiency and processing capability and lower bookkeeping costs (Rupang et al, 2019). Furthermore, Rupang et al (2019) stated that greater transparency and increased access to data could allow investors to dig into finances more efficiently.…”

“…They can save costs through increased efficiency and processing capability and lower bookkeeping costs (Rupang et al, 2019). Furthermore, Rupang et al (2019) stated that greater transparency and increased access to data could allow investors to dig into finances more efficiently. It can help reduce investors' perceptions of the risk and uncertainty of investing in companies and make them more likely to invest (Andriana & Arina Raspati, 2015).…”

“…The advantages of XBRL as a standard business reporting format that has been used worldwide are recognized by various institutions in Indonesia, including Bank Indonesia and the IDX (Rupang et al, 2019). The IDX is the second organization to launch the XBRL implementation officially for public companies in Indonesia.…”

“…They also stated that the impact of XBLR implementation in shortening the reporting time was more influential on large companies than the small ones. The research results conducted by Rupang et al (2019) found that the XBRL implementation had a positive and significant impact on the timeliness of financial reporting. The positive direction of the XBRL variable coefficient indicates that the application of XBRL can increase or speed up the processing of financial reporting so that companies can timely report financial reporting on the Indonesian Stock Exchange.…”