The Impact of XBRL on Financial Statement Structural Comparability

Yang, Steve Y.; Liu, Fang‐Chun; Zhu, Xiaodi

doi:10.1007/978-3-319-62636-9_13

Cited by 11 publications

(7 citation statements)

References 18 publications

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“…Our finding is consistent with the argument that XBRL provides easy access to financial statements. Also, it makes it easier for users to compare companies’ performance and make informed decisions (Yang et al , 2018). In addition, to increase comparability and accessibility, the XBRL platform also encourages transparent reporting because it has pre-determined fields requiring more detailed information than regular paper reporting (Blankespoor et al , 2014).…”

Section: Resultsmentioning

confidence: 99%

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

Tawiah

Borgi

2022

ARJ

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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.

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Section: Resultsmentioning

confidence: 99%

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

Tawiah

Borgi

2022

ARJ

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“…The adoption of XBRL technology enhances the competitiveness of the firm by enhancing the accuracy and comparability of financial and non-financial data so that various stakeholders can more easily evaluate a company's financial strengths and weaknesses (Yang et al, 2018). In support of this, Huang et al (2021) highlighted that XBRLbased decisions influence stock prices, overall market perception and the competitiveness of the firm.…”

Section: Extensible Business Reporting Language Financial Reporting F...mentioning

confidence: 93%

“…By enabling tech-savvy, data-driven financial analysts to present a concise, convincing tale about an organization's financial conditions, risks and opportunities, a modernized approach to reporting encourages a culture of continuous development (Aksoy et al, 2021). Through XBRL-based financial reporting, the firm can communicate financial information to internal and external stakeholders through the income statement, cash flow statement, statement of changes in equity and balance sheet efficiently and interactively (Yang et al, 2018;Shan and Troshani, 2014). Therefore, H 1 and H 2 are framed (see Figure 1) as:…”

Section: Influence Of Xbrl Technologymentioning

confidence: 99%

“…In some studies, it is also noted that XBRL reduced or eliminated penalties and other costs of compliance procedures. In recent days, it has been observed that XBRL can also be used for various purposes other than financial reporting (Hsieh and Bedard, 2018;Yang et al, 2018). Such diversified areas of business reporting for which XBRL can be used are regulatory compliance, audit and assurance and integrated reporting (Uyob et al, 2019).…”

Section: Financial Reporting Through Extensible Business Reporting La...mentioning

confidence: 99%

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The influence of XBRL technology on the quality of financial reporting: exploring mediating variables in the Indian context

N.,

Divyashree,

Rahiman

et al. 2024

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Purpose This study aims to examine the impact of extensible business reporting language (XBRL) technology and its functionality on various aspects of financial reporting and its overall quality. Design/methodology/approach To conduct this study, data was collected from a variety of professionals, including accountants, auditors, tax advisors and others. A structured research instrument was developed, and the collected data were analysed using structural equation modelling and mediation analysis techniques. Findings The study’s results showed that XBRL technology and its functionality have a noteworthy impact on different aspects of financial reporting. Moreover, the various aspects of financial reporting positively affect the overall quality of financial reporting. Research limitations/implications This study solely relied on the opinions of various professionals regarding the current issue under investigation and did not empirically assess the reporting practices of companies by examining their XBRL-based reports. Additionally, it concentrated solely on financial reporting aspects and did not account for non-financial aspects. The main theoretical contributions of this paper to technology in financial reporting, XBRL and accounting literature are that it sheds light on the influence of the use of technologies in the business reporting process and their influence on various aspects of business reporting, which has only received confined focus from earlier studies so far. Practical implications This study’s findings could provide valuable insights to the managerial teams of organizations seeking to digitize their business reporting practices, specifically in areas such as regulatory compliance, integrated reporting and timely dissemination of reports in a sustainable way. Furthermore, it could help these teams reap the benefits of technology for various regulatory compliance matters. Originality/value This study could assist business organizations and regulatory authorities in adopting and implementing technology such as XBRL for accounting and business reporting. Furthermore, the study’s findings can aid in enhancing financial reporting practices by considering emerging aspects such as ESG and sustainability aspects.

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“…Our finding is consistent with the argument that XBRL provides easy access to financial statements. Also, it makes it easier for users to compare companies' performance and make informed decisions (Yang et al, 2018). In addition, to increase comparability and accessibility, the XBRL platform also encourages transparent reporting because it has pre-determined fields requiring more detailed information than regular paper reporting (Blankespoor et al, 2014).…”

Section: Tawiah V and Borgi H (2022) -Accounting Research Journalmentioning

confidence: 99%