xamining XBRL Early Adopters: A Study of Determinants and Value Relevance

DOI

10.2991/apbec-18.2019.35How to use a DOI?

Keywords

XBRL adoption, determinants, value relevance, firm characteristics, board characteristics

Abstract

In 2015, Indonesia began implementing XBRL as one of its financial reporting formats. Based on the technology organization environment (TOE) model and signaling theory, this study examines the factors that determine early adopters in the early phase (2015 and 2016) of XBRL in Indonesia. Furthermore, this study examines the benefits of applying XBRL to the value relevance of earnings. The sample of this study is 360 firms listed on the Indonesia Stock Exchange. We find that in the early phase there were 298 firms using XBRL from the total sample and by 2016 that figure had decreased to 133, perhaps indicating a negative market reaction to XBRL. By using logistic regression, we find that a firm’s size and profitability are the firm’s financial characteristics that determines XBRL early adoption. The composition of financial reporting expertise on the board also determine XBRL early adoption. We also find that there is no effect of XBRL adoption on the value relevance of earnings.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Fauziah Muchlis
AU  - Maretha Primadyan
AU  - Elvia R. Shauki
AU  - Vera Diyanty
PY  - 2019/07
DA  - 2019/07
TI  - xamining XBRL Early Adopters: A Study of Determinants and Value Relevance
BT  - Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018)
PB  - Atlantis Press
SP  - 267
EP  - 274
SN  - 2352-5428
UR  - https://doi.org/10.2991/apbec-18.2019.35
DO  - 10.2991/apbec-18.2019.35
ID  - Muchlis2019/07
ER  -