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

27 Pages Posted: 14 Jun 2016

See all articles by Jap Efendi

Jap Efendi

University of Texas at Arlington

Jin Dong Park

Towson University

Chandra Subramaniam

California State University, Northridge - David Nazarian College of Business and Economics

Date Written: June 2016

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

Suggested Citation

Efendi, Jap and Park, Jin Dong and Subramaniam, Chandra, Does the XBRL Reporting Format Provide Incremental Information Value? A Study Using XBRL Disclosures During the Voluntary Filing Program (June 2016). Abacus, Vol. 52, Issue 2, pp. 259-285, 2016, Available at SSRN: https://ssrn.com/abstract=2795334 or http://dx.doi.org/10.1111/abac.12079

Jap Efendi (Contact Author)

University of Texas at Arlington ( email )

415 S West St Apt no 205
Arlington, TX 76019
United States

Jin Dong Park

Towson University ( email )

8000 York Road, ST 100A
Towson, MD 21204
United States

Chandra Subramaniam

California State University, Northridge - David Nazarian College of Business and Economics ( email )

Northridge, CA 91330
United States

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