The Impact of Adoption of XBRL on Information Risk in Representative Countries of Scandinavian Region

Valentina Tohang • Michellen Lan
Journal article Jurnal Keuangan dan Perbankan • Oktober 2017

Unduh teks lengkap
(English, 12 pages)

Abstrak

This study aimed to examine the impact of the adoption of eXtensible Business Reporting Language (XBRL) in reduced the information risk of financial reporting disclosures. Information transparency, information asymmetry, the efficiency of the information and also the quality of the information disclosures will impact upon information risk. An increased of information risk and information asymmetry will reduced transparency and efficiency of the financial disclosures due to the unqualified financial and non-financial information provided by the companies (Kim, Kim, & No, 2011). Event return volatility (ERV) used to represent the occurrence of information risk. Used a sample of listed companies in the Scandinavian region of the European Union (EU), we found that XBRL adoption had lowered the occurrence of information risk. This finding supported by prior studies which stated, that a decrease in the degree of ERV, as a proxy of lower information risk, may directly impact the information quality, information efficiency and information transparency. By detected the existence of information risk, stakeholders can more aware of the necessity to ensured the quality of the reporting information disclosure. This paper was also highlights the benefits of adopting XBRL as a reporting standard to improved company's reporting disclosure.

Metrik

  • 238 kali dilihat
  • 1037 kali diunduh

Jurnal

Jurnal Keuangan dan Perbankan

Jurnal Keuangan dan Perbankan (JKP) adalah publikasi dari Program Studi Keuangan dan Perbankan Un... tampilkan semua