Does the XBRL Reporting Format Provide Incremental Information Value? A Study Using XBRL Disclosures During the Voluntary Filing Program

Jap Efendi; Jin Dong Park; Chandra Subramaniam

doi:10.1111/abac.12079

Does the XBRL Reporting Format Provide Incremental Information Value? A Study Using XBRL Disclosures During the Voluntary Filing Program

Jap Efendi, Jin Dong Park, Chandra Subramaniam

Research output: Contribution to journal › Article › peer-review

25 Scopus citations

Abstract

This study investigates whether the eXtensible Business Reporting Language (XBRL) reporting format provides incremental information value beyond the same 10K/10Q filings previously provided in HTML format. Using a sample from the XBRL Voluntary Filing Program, we document a significant increase in stock price variance on the day when voluntary XBRL reports are filed. We find market response is stronger when more content is filed on the same day. To evaluate relative information value, we decompose the quarterly return variance for three primary news announcements related to earnings including earnings announcement, HTML filing, and XBRL filing. We find XBRL filings have larger relative information value than HTML filings. Our results indicate that the XBRL reporting format provides incremental information content.

Original language	English (US)
Pages (from-to)	259-285
Number of pages	27
Journal	Abacus
Volume	52
Issue number	2
DOIs	https://doi.org/10.1111/abac.12079
State	Published - Jun 1 2016
Externally published	Yes

Keywords

Financial reporting technology
Information content
Information value
Standard Business Reporting
XBRL

ASJC Scopus subject areas

Accounting

Access to Document

10.1111/abac.12079

Cite this

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title = "Does the XBRL Reporting Format Provide Incremental Information Value? A Study Using XBRL Disclosures During the Voluntary Filing Program",

abstract = "This study investigates whether the eXtensible Business Reporting Language (XBRL) reporting format provides incremental information value beyond the same 10K/10Q filings previously provided in HTML format. Using a sample from the XBRL Voluntary Filing Program, we document a significant increase in stock price variance on the day when voluntary XBRL reports are filed. We find market response is stronger when more content is filed on the same day. To evaluate relative information value, we decompose the quarterly return variance for three primary news announcements related to earnings including earnings announcement, HTML filing, and XBRL filing. We find XBRL filings have larger relative information value than HTML filings. Our results indicate that the XBRL reporting format provides incremental information content.",

keywords = "Financial reporting technology, Information content, Information value, Standard Business Reporting, XBRL",

author = "Jap Efendi and Park, {Jin Dong} and Chandra Subramaniam",

note = "Publisher Copyright: {\textcopyright} 2016 Accounting Foundation, The University of Sydney",

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AU - Subramaniam, Chandra

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Does the XBRL Reporting Format Provide Incremental Information Value? A Study Using XBRL Disclosures During the Voluntary Filing Program

Abstract

Keywords

ASJC Scopus subject areas

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