The impact of mandatory adoption of XBRL on firm’s stock liquidity: a cross-country study

Sassi, Wafa; Othman, Hakim Ben; Hussainey, Khaled

doi:10.1108/jfra-07-2020-0207

Cited by 13 publications

(14 citation statements)

References 131 publications

(274 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Prior studies suggest that the consequences of XBRL are unclear and mixed because of little research and a lack of knowledge on the topic (Steenkamp and Nel, 2012; Sassi et al , 2021). The few studies that have provided mixed findings are limited to the firm level (Chen et al , 2021; Liu et al , 2017; Hao et al , 2014; Shan and Troshani, 2016; Zhang et al , 2019).…”

Section: Introductionmentioning

confidence: 99%

Impact of XBRL adoption on financial reporting quality: a global evidence

Tawiah

Borgi

2022

ARJ

View full text Add to dashboard Cite

Purpose This paper aims to examine the effect of eXtensible Business Reporting Language (XBRL) adoption on financial reporting quality at the country-level (developing and developed countries). Design/methodology/approach This study uses data from 98 developed and developing countries between 2005 and 2018. This study collected data from various sources such as the World Economic Forum, World Development Indicators, World Governance Indicators and XBRL website. Findings The results show that XBRL is associated with an increased financial reporting quality. However, the relationship is stronger in developing countries than in developed countries. This study also finds that the results remain the same after accounting for years of XBRL experience and the effect of accounting globalisation. The results are consistent with the assumption that XBRL-formatted financial statements improve information efficiency through increased searching efficiency, quality of display and comparability. The results are robust to alternative econometric modifications such as controlling for country, year effects and endogeneity. Practical implications The results can potentially assist the XBRL promoters and regulators in expeditiously assessing the benefits of XBRL and advocating its adoption by many countries. The findings offer more motivations for regulators around the world to mandate this new filing standard format. Originality/value This study contributes to the literature by providing empirical evidence on the consequences of XBRL at the country level. This study provides evidence on an important question of whether the XBRL, new information technology in the accounting field, can play a useful role in improving financial reporting.

show abstract

Section: Introductionmentioning

confidence: 99%

Impact of XBRL adoption on financial reporting quality: a global evidence

Tawiah

Borgi

2022

ARJ

View full text Add to dashboard Cite

show abstract

“…We can here refer to Sassi et al (2021) who show, for a large sample covering 13 countries, that mandatory adoption of XBRL improves stock liquidity. Shan and Troshani (2020) show that, when XBRL became mandatory, the value relevance and reliability of several accounting measures have improved in two different jurisdictions (i.e.…”

Section: Mf 485mentioning

confidence: 99%

“…We can here refer to Sassi et al. (2021) who show, for a large sample covering 13 countries, that mandatory adoption of XBRL improves stock liquidity.…”

Section: Introductionmentioning

confidence: 99%

The relevance of XBRL extensions for stock markets: evidence from cross-listed firms in the US

Cormier

Teller

Dufour

2022

View full text Add to dashboard Cite

PurposeThe study investigates the relevance for stock markets of voluntary disclosure of eXtensible Business Reporting Language (XBRL) extensions [based on International Financial Reporting Standards (IFRS) or US-GAAP] for an international sample of US cross-listed firms.Design/methodology/approachThe study examines if the disclosure of XBRL extensions by a firm provides relevant information to market participants. Towards that end, this paper investigates whether this type of disclosure affects the level of information asymmetry between insiders and investors and if it is value relevant. This study measures information asymmetry by bid-ask spread and value relevance by stock price or Tobin's Q.FindingsAfter a certain level of disclosure of XBRL extensions, the impact on stock pricing is negative (creates noise on stock markets). Controlling for that phenomenon, both IFRS and US-GAAP XBRL extensions are value relevant. Second, results indicate that XBRL extensions are positively (negatively) related to stock market value for firms that exhibit positive (negative) earnings. This suggests a complementary effect between earnings and XBRL extensions on their relation with stock price or Tobin's Q. Finally, the results also indicate that both IFRS extensions and US-GAAP extensions are associated with lower information asymmetry (i.e. bid-ask spread).Originality/valueTo the best of the authors’ knowledge, this study is the first to investigate the relevance of XBRL extensions under IFRS for US cross-listed firms since the availability of the IFRS taxonomy for foreign private issuers that prepare financial statements under IFRS standards.

show abstract

“…Globally, regulators are using XBRL to improve the transparency of capital for investors [1]. Despite these acclaimed benefits, little is known about factors driving countries to adopt XBRL (Perri and Allko, 2015; Steenkamp and Nel, 2012; Sassi et al , 2021). Some scholars have called for comparative analysis of XBRL adoption in different countries (Bartolacci et al , 2021).…”

Section: Introductionmentioning

confidence: 99%

“…ideology-driven policymakers and special interest groups. Other research also notices the lack of knowledge of XBRL in several countries (Perri and Allko, 2015;Steenkamp and Nel, 2012;Sassi et al, 2021). More recently, Bartolacci et al (2021) called for research on comparative analysis of XBRL adoption in different countries.…”

Section: Introductionmentioning

confidence: 99%

Determinants of eXtensible business reporting language adoption: an institutional perspective

Borgi

Tawiah

2022

IJAIM

View full text Add to dashboard Cite

Purpose This paper aims to examine the institutional factors that influence the adoption of eXtensible Business Reporting Language (XBRL) at the country level. Design/methodology/approach The authors use a large sample of 175 developed and developing countries over 14 years. Data is obtained from different sources including, World Development Indicators, the Reports on the Observance of Standards and Codes (ROSC) website and the Quality of Government database. Findings The results highlight the significance of coercive, mimetic and normative pressures in terms of ROSC reports, the extent of accounting globalisation and education. However, in further analyses, the authors found that coercive pressure is pronounced in developing countries. Nevertheless, mimetic pressure is an important, influential factor for all countries regardless of their status as developed or developing. Originality/value This study responds to the lack of research on the country-level factors of countries’ adoption of XBRL. The present study contributes to the literature by providing additional evidence on the country-level factors influencing XBRL adoption. Using the institutional theory, the authors provide a better understanding of the global diffusion of XBRL, which has attracted little attention. The study also complements prior literature on the adoption of international accounting and financial reporting practices.

show abstract

The impact of mandatory adoption of XBRL on firm’s stock liquidity: a cross-country study

Cited by 13 publications

References 131 publications

Impact of XBRL adoption on financial reporting quality: a global evidence

Impact of XBRL adoption on financial reporting quality: a global evidence

The relevance of XBRL extensions for stock markets: evidence from cross-listed firms in the US

Determinants of eXtensible business reporting language adoption: an institutional perspective

Contact Info

Product

Resources

About