The Impact of Adoption of The XBRL on the Development of Stock Markets

Abstract

The paper examines the impact of adoption of the eXtensible Business Reporting Language (XBRL) on the development of stock markets using a large international sample. Our analysis was based on panel estimation techniques for 18 countries for a period of 20 years from 2000 to 2019. Our analysis provided empirical evidence that the adoption of the XBRL has a negative impact on the development of stock markets. This implies that strict policies are needed for the successful adoption of the XBRL and also a mechanism is needed to ensure that stakeholders understand the value of the information provided by the XBRL formatted financial reports. Keywords: XBRL, development of capital markets, panel estimation techniques, cross-countries study

هل یؤدی التطبیق الإلزامی لـ XBRL إلى تحسین جودة الأرباح المبلغ عنها؟ دراسة تطبیقیة على الشركات المدرجة فی سوق الأوراق المالیة السعودیة(باللغة الانجلیزیة)

“…Furthermore, XBRL helps to automatically extract or exchange a part of the financial data (Sassi et al, 2021;Cahan et al, 2022). Therefore, it is expected to facilitate the creation, exchange, and comparison of information, which in turn improves the quality of financial reporting (Yang et al 2018).…”

“…Some examined the role of XBRL adoption in the development of stock markets (Faboyede, Mukoro, Lyoha, & Odafen, 2017;Suriakumari, 2018;Sassi, Ben Othman, & Hussainey, 2021). For example, Faboyede, Mukoro, Lyoha, and Odafen (2017) found that the environmental factors, as well as operational, regulatory and technical challenges influence the application of XBRL on the Nigerian Stock Exchange.…”