Initial evidence on the market impact of the XBRL mandate

Blankespoor, Elizabeth; Miller, Brian P.; White, Hal D.

doi:10.1007/s11142-013-9273-4

Cited by 192 publications

(75 citation statements)

References 45 publications

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“…This fact is consistent with the findings of Blankespoor, B.P. Miller et al () and Harris and Morsfield (), in that far fewer XBRL tools were available in the initial XBRL adoption year…”

Section: Literature Review and Hypothesis Developmentsupporting

confidence: 91%

Information‐Processing Costs and Breadth of Ownership

Kim

Liu

2019

Contemporary Accting Res

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Using the U.S. Securities and Exchange Commission's mandate of eXtensible Business Reporting Language (XBRL) as a natural experiment, this study investigates whether and how the decreased information‐processing costs brought about by XBRL influence firms’ breadth of share ownership. We find that the XBRL mandate is associated with an increase in the total number of a firm's shareholders. This finding is consistent with the notion that XBRL facilitates a more transparent environment and decreases information‐processing costs, thereby attracting more shareholders in general. More interestingly, we find that while XBRL adoption is associated with an increase in share ownership of individual and non‐U.S. foreign institutional investors, it is associated with a decrease in share ownership of U.S. domestic institutional investors. Further evidence shows that this asymmetric shift in share ownership is more pronounced for more complex firms. Our findings, taken together, suggest that the decreased information‐processing costs brought about by XBRL help firms establish a level playing field by reducing the information disadvantages of individual and foreign institutional investors over domestic institutional investors. Our results are robust to potential endogeneity concerns and alternative research designs.

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“…This fact is consistent with the findings of Blankespoor, B.P. Miller et al () and Harris and Morsfield (), in that far fewer XBRL tools were available in the initial XBRL adoption year…”

Section: Literature Review and Hypothesis Developmentsupporting

confidence: 91%

Information‐Processing Costs and Breadth of Ownership

Kim

Liu

2019

Contemporary Accting Res

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“…Blankerspoor et al (2012) argued that the use of XBRL can enhance the transparency of the reporting firms, in which the reporting firms will be obliged to follow the pre-determined template and fill the required information. Such template will diminish the possibility of financial institutions failing to disclose relevant information to their external stakeholders.…”

Section: Xbrl As the Most Suitable Common Delivery System To Reduce Smentioning

confidence: 99%

“…According to IASB (2013), this can be achieved through a common delivery system. Blankerspoor et al, 2012 andYoon et al, 2012 claim that XBRL has the potential to act as the most suitable common delivery system. Many studies have found that XBRL adoption has resulted in increased transparency of firms and improved quality of financial information through increased flexibility and understandability.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…In today's dynamic, technology-driven environment, the use of XBRL will allow the utilization of standardized tagging system for both quantitative and qualitative information (Arnold et al 2012). It can improve the reliability and efficiency of both financial and non-financial reporting, while making it easier for the shareholders to extract all information that they need (Blankerspoor et al, 2012). Yoon et al (2011) also argued that the use of XBRL can reduce the cost of capital and information asymmetry in the capital market.…”

Section: Introductionmentioning

confidence: 99%

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An Analysis of XBRL Adoption Towards Systemic Risk of Financial Institutions Listed in NYSE

Suwardi¹,

Tohang²

2017

AABFJ

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This research aims to test the impact of the mandatory adoption of XBRL towards the systemic risk of American financial institutions listed in New York Stock Exchange (NYSE) by utilizing 45 NYSE listed financial institutions for the time period of [2007][2008][2009][2010][2011][2012]. The measure of systemic risk is based on SRisk by Acharya et al. (2012) which is available in the NYU Stern V-Lab. XBRL is a dummy variable, in which 0 represents a pre XBRL adoption period (2007)(2008) while 1 represents an XBRL reporting environment (2011)(2012). It is further interacted with Corporate Governance, which is measured using an index developed by Brown & Caylor (2006). The result proves that XBRL do not significantly impact systemic risk of financial institutions listed in NYSE. The findings have been determined after having controlled firm size, capital ratio, leverage ratio and performance. KeywordsSystemic Risk, XBRL, Corporate Governance, Market Discipline, Financial Institution, Disclosure, NYSE, Risk Taking Cover Page FootnoteThis research focuses on the impact of XBRL towards systemic risk of financial institutions listed in NYSE. Apart from this, it will also test the impact of the adoption towards size, capital ratio, leverage and performance of the financial institutions. The sample includes all financial institutions listed in NYSE between the years of 2007-2012. The impact is determined by comparing the systemic risk of individual financial institutions pre and post the mandate of XBRL adoption in U.S. in 2009, in which the year 2009 and 2010 will be considered as transition periods due to the fact that XBRL is implemented through phased-in approach. Based on the data of 45 financial institutions, the findings will provide meaningful analysis and worthy discussions over the subject of XBRL. This research is expected to contribute to 1. Companies (Financial Institutions) Financial institutions that are committed towards improving their corporate governance, can utilize this research to have an idea regarding how XBRL can serve as the tool to improve their corporate governance while also mitigating risky behaviors (which in turn reduces systemic risk) in order to further maximize their shareholder values. 2. Investors This research has the potential to provide investors with new insights which can assist in their decision making particularly regarding financial institutions. They will be acquired with the knowledge that financial firms with XBRL in place will provide them with timely and accurate information, improving their decision making. XBRL enhances transparency of financial firms which means that investors will face less difficulty in analyzing the financial information and will be able to properly asses the risk associated in their investments. 3. Government (Regulatory Agencies) In understanding the impact of XBRL towards systemic risk in U.S. financial institutions, regulatory agencies all around the world that are facing similar problems can utilize the same tool in order to limit the ris...

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“…Further, as of July 2013, foreign firms listed on either the New York Stock Exchange or NASDAQ do not yet have to comply with the mandate. 2 Although prior research (i.e.,Hodge et al 2004;Ahmadpour and Bodaghi 2010;Blankespoor et al 2012) uses the term ''search-facilitating'' to describe parser software that manipulates financial information tagged in XBRL, the current study adopts ''XBRL-enabled'' terminology, since investors can also conduct simple searches using spreadsheets or PDFs. However, as noted in Section II, searches using spreadsheets or PDFs are often more laborintensive.…”

mentioning

confidence: 99%

XBRL-Enabled, Spreadsheet, or PDF? Factors Influencing Exclusive User Choice of Reporting Technology

Janvrin

Pinsker

Mascha

2013

Journal of Information Systems

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U.S. adoption of eXtensible Business Reporting Language (XBRL)-enabled technology has been slow. Prior experimental evidence suggests that even when XBRL-enabled technology is available, almost 50 percent of participants do not use it. This study informs AIS researchers on the state of XBRL-enabled technology by using an exclusive choice experimental design to examine (1) which reporting technology nonprofessional investors will choose to complete a financial analysis task (XBRL-enabled, portable document file, or spreadsheet), and (2) why they choose the specific technology.Findings indicate that 66 percent of nonprofessional investors chose XBRL-enabled technology, while 34 percent chose spreadsheets. Participants who chose the former perceived that it reduces the time to complete the task (i.e., increases task efficiency), while participants who chose the latter indicated their choice was driven by prior technology experience. Study results have implications for the Securities and Exchange Commission (SEC), researchers examining nonprofessional investor behavior, user choice literature, and XBRL-enabled technology adoption.

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Initial evidence on the market impact of the XBRL mandate

Cited by 192 publications

References 45 publications

Information‐Processing Costs and Breadth of Ownership

Information‐Processing Costs and Breadth of Ownership

An Analysis of XBRL Adoption Towards Systemic Risk of Financial Institutions Listed in NYSE

XBRL-Enabled, Spreadsheet, or PDF? Factors Influencing Exclusive User Choice of Reporting Technology

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