IDEAS home Printed from https://ideas.repec.org/a/pal/ijodag/v21y2024i2d10.1057_s41310-023-00192-6.html
   My bibliography  Save this article

The determinants of eXtensible Business Reporting Language (XBRL) adoption: a cross-country study

Author

Listed:
  • Wafa Sassi

    (University of Manouba)

  • Hakim Ben Othman

    (ICN Business School & CEREFIGE-Université de Lorraine)

  • Khaled Hussainey

    (Portsmouth University)

Abstract

This paper investigates the determinants of eXtensible Business Reporting Language (XBRL) adoption using the Technology-Organizational-Environment framework. This framework explains how the process of adopting and implementing XBRL is influenced by the technological context (country's firm-level technology absorption and technological capacity), organizational context (education) and environmental context (level of economic development; degree of external economic openness; investor protection; accounting system and the burden of government regulation). Using a sample of 78 countries during the period 2009–2017, we find that countries with high levels of technology absorption, higher levels of economic development and strong investor protection are more likely to adopt XBRL.

Suggested Citation

  • Wafa Sassi & Hakim Ben Othman & Khaled Hussainey, 2024. "The determinants of eXtensible Business Reporting Language (XBRL) adoption: a cross-country study," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(2), pages 175-192, June.
    • Handle: RePEc:pal:ijodag:v:21:y:2024:i:2:d:10.1057_s41310-023-00192-6
    DOI: 10.1057/s41310-023-00192-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41310-023-00192-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41310-023-00192-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Persakis, Anthony & Iatridis, George Emmanuel, 2017. "The joint effect of investor protection, IFRS and earnings quality on cost of capital: An international study," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 46(C), pages 1-29.
    2. Syou-Ching Lai & Yuh-Shin Lin & Yi-Hung Lin & Hua-Wei Huang, 2015. "XBRL adoption and cost of debt," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 23(2), pages 199-216, May.
    3. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 2000. "Investor protection and corporate governance," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 3-27.
    4. Elizabeth Blankespoor, 2019. "The Impact of Information Processing Costs on Firm Disclosure Choice: Evidence from the XBRL Mandate," Journal of Accounting Research, Wiley Blackwell, vol. 57(4), pages 919-967, September.
    5. Emma Yan Peng & John Shon & Christine Tan, 2011. "XBRL and Accruals: Empirical Evidence from China," Accounting Perspectives, John Wiley & Sons, vol. 10(2), pages 109-138, June.
    6. Mine Aksoy & Mustafa Kemal Yilmaz & Nuraydin Topcu & Özgür Uysal, 2021. "The impact of ownership structure, board attributes and XBRL mandate on timeliness of financial reporting: evidence from Turkey," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 22(4), pages 706-731, April.
    7. Henderson, Dave & Sheetz, Steven D. & Trinkle, Brad S., 2012. "The determinants of inter-organizational and internal in-house adoption of XBRL: A structural equation model," International Journal of Accounting Information Systems, Elsevier, vol. 13(2), pages 109-140.
    8. Carolyn J. Cordery & Carolyn J. Fowler & Khairil Mustafa, 2011. "A solution looking for a problem: factors associated with the non‐adoption of XBRL," Pacific Accounting Review, Emerald Group Publishing Limited, vol. 23(1), pages 69-88, May.
    9. Ariel Markelevich & Lewis Shaw & Hagit Weihs, 2015. "The Israeli XBRL Adoption Experience," Accounting Perspectives, John Wiley & Sons, vol. 14(2), pages 117-133, June.
    10. Robert Pinsker, 2003. "XBRL awareness in auditing: a sleeping giant?," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 18(9), pages 732-736, December.
    11. Ozkaya, Hakan, 2018. "Effect of Mandatory IFRS Adoption on Cost of Debt in Turkey," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 9(3), pages 579-588, July.
    12. Lizhong Hao & Joseph H. Zhang & Jing (Bob) Fang, 2014. "Does voluntary adoption of XBRL reduce cost of equity capital?," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 22(2), pages 86-102, April.
    13. Premuroso, Ronald F. & Bhattacharya, Somnath, 2008. "Do early and voluntary filers of financial information in XBRL format signal superior corporate governance and operating performance?," International Journal of Accounting Information Systems, Elsevier, vol. 9(1), pages 1-20.
    14. Rezarta Shkurti (Perri) & Dionisa Allko, 2016. "Business Reporting Language - A Survey With The Albanian Companies And Institutions," Management Strategies Journal, Constantin Brancoveanu University, vol. 32(2), pages 50-61.
    15. Wafa Sassi & Hakim Ben Othman & Khaled Hussainey, 2021. "The impact of mandatory adoption of XBRL on firm’s stock liquidity: a cross-country study," Journal of Financial Reporting and Accounting, Emerald Group Publishing Limited, vol. 19(2), pages 299-324, January.
    16. Hela Borgi & Vincent Tawiah, 2022. "Determinants of eXtensible business reporting language adoption: an institutional perspective," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 30(3), pages 352-371, March.
    17. Itzhak Goldberg & Lee Branstetter & John Gabriel Goddard & Smita Kuriakose, 2010. "Globalization and Technology Absorption : Role of Trade, FDI and Cross-Border Knowledge Flows," World Bank Publications - Reports 10192, The World Bank Group.
    18. Jacqueline L. Birt & Kala Muthusamy & Poonam Bir, 2017. "XBRL and the qualitative characteristics of useful financial information," Accounting Research Journal, Emerald Group Publishing Limited, vol. 30(01), pages 107-126, May.
    19. Alkhatib, Esra'a & Ojala, Hannu & Collis, Jill, 2019. "Determinants of the voluntary adoption of digital reporting by small private companies to Companies House: Evidence from the UK," International Journal of Accounting Information Systems, Elsevier, vol. 34(C), pages 1-1.
    20. Hela Turki & Senda Wali & Younes Boujelbene, 2016. "The effect of IFRS mandatory adoption on the information asymmetry," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1209100-120, December.
    21. Phanindra V. Wunnava & Daniel B. Leiter, 2009. "Determinants of Intercountry Internet Diffusion Rates," American Journal of Economics and Sociology, Wiley Blackwell, vol. 68(2), pages 413-426, April.
    22. Cooke, Terence E. & Wallace, R. S. Olusegun, 1990. "Financial disclosure regulation and its environment: A review and further analysis," Journal of Accounting and Public Policy, Elsevier, vol. 9(2), pages 79-110.
    23. Harmandeep Singh & Arwinder Singh, 2021. "Understanding inhibitors to XBRL adoption: an empirical investigation," Accounting Research Journal, Emerald Group Publishing Limited, vol. 35(5), pages 598-615, December.
    24. Houqe, Muhammad Nurul & Easton, Samuel & van Zijl, Tony, 2014. "Does mandatory IFRS adoption improve information quality in low investor protection countries?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 23(2), pages 87-97.
    25. Chung, Huimin, 2006. "Investor protection and the liquidity of cross-listed securities: Evidence from the ADR market," Journal of Banking & Finance, Elsevier, vol. 30(5), pages 1485-1505, May.
    26. Chouhan, Vineet & Goswami, Shubham, 2015. "XBRL Acceptance in India: A Behavioral Study," American Journal of Trade and Policy, Asian Business Consortium, vol. 2(2), pages 71-78.
    27. Zeghal, Daniel & Mhedhbi, Karim, 2006. "An analysis of the factors affecting the adoption of international accounting standards by developing countries," The International Journal of Accounting, Elsevier, vol. 41(4), pages 373-386, 012.
    28. Zehri, Fatma & Chouaibi, Jamel, 2013. "Adoption determinants of the International Accounting Standards IAS/IFRS by the developing countries," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 18(35), pages 57-62.
    29. Yoon, Hyungwook & Zo, Hangjung & Ciganek, Andrew P., 2011. "Does XBRL adoption reduce information asymmetry?," Journal of Business Research, Elsevier, vol. 64(2), pages 157-163, February.
    30. Denis Cormier & Dominique Dufour & Philippe Luu & Pierre Teller & Robert Teller, 2019. "The Relevance of XBRL Voluntary Disclosure for Stock Market Valuation: The Role of Corporate Governance," Post-Print hal-02009366, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wafa Sassi & Hakim Ben Othman & Khaled Hussainey, 2023. "The determinants of eXtensible Business Reporting Language (XBRL) adoption : a cross-country study," Post-Print hal-04191489, HAL.
    2. Diego Valentinetti & Michele A. Rea, 2013. "XBRL for Financial Reporting: Evidence on Italian GAAP versus IFRS," Accounting Perspectives, John Wiley & Sons, vol. 12(3), pages 237-259, September.
    3. Zhenyang Bai & Manabu Sakaue & Fumiko Takeda, 2014. "The Impact of XBRL Adoption on the Information Environment: Evidence from Japan," The Japanese Accounting Review, Research Institute for Economics & Business Administration, Kobe University, vol. 4, pages 49-74, December.
    4. Indrit Troshani & Nick Rowbottom, 2021. "Digital Corporate Reporting: Research Developments and Implications," Australian Accounting Review, CPA Australia, vol. 31(3), pages 213-232, September.
    5. Henderson, Dave & Sheetz, Steven D. & Trinkle, Brad S., 2012. "The determinants of inter-organizational and internal in-house adoption of XBRL: A structural equation model," International Journal of Accounting Information Systems, Elsevier, vol. 13(2), pages 109-140.
    6. Gatluak Gach Chuol Thony & Anthony Duku Peter, 2023. "The Impact of Adoption of International Financial Reporting Standard on Quality of Accounting Information in South Sudan: A Case Study of Kenya Commercial Bank and Cooperative Bank," International Journal of Science and Business, IJSAB International, vol. 19(1), pages 28-48.
    7. Trinh, Quoc Dat & Haddad, Christian & Salameh, Elie, 2023. "Financial institutional blockholders and earnings quality: Do blockholders contestability and countries' institutions matter?," International Review of Financial Analysis, Elsevier, vol. 87(C).
    8. Diyah Probowulan & Ardianto Ardianto, 2024. "Internet financial reporting disclosure index of e‐commerce businesses on social media," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 31(2), June.
    9. Akisik, Orhan, 2020. "The impact of financial development, IFRS, and rule of LAW on foreign investments: A cross-country analysis," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 815-838.
    10. Adel Ali Yassin Alzyoud & Umair Ahmed & Mahmoud Radhwan Hussein Alzgool & Munwar Hussain Pahi, 2020. "Leaders¡¯ Emotional Intelligence and Employee Retention: Mediation of Job Satisfaction in the Hospitality Industry," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(3), pages 1-17, June.
    11. Jap Efendi & Jin Dong Park & Chandra Subramaniam, 2016. "Does the XBRL Reporting Format Provide Incremental Information Value? A Study Using XBRL Disclosures During the Voluntary Filing Program," Abacus, Accounting Foundation, University of Sydney, vol. 52(2), pages 259-285, June.
    12. Miścikowska Daria, 2022. "An Exploratory Study on Preparers’ Perception of ESEF Reporting: Evidence from the Warsaw Stock Exchange," Folia Oeconomica Stetinensia, Sciendo, vol. 22(1), pages 191-218, June.
    13. Bonito, Ana & Pais, Cláudio, 2018. "The macroeconomic determinants of the adoption of IFRS for SMEs," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 21(2), pages 116-127.
    14. Alexandra-Gabriela Marina, 2019. "ACCOUNTING AND CULTURAL DIMENSIONS IN EUROPE AND CIS COUNTRIES REGARDING THE ADOPTION OF IFRS FOR SMEs," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(21), pages 1-2.
    15. Dong, Minyue & Stettler, Alfred, 2011. "Estimating firm-level and country-level effects in cross-sectional analyses: An application of hierarchical modeling in corporate disclosure studies," The International Journal of Accounting, Elsevier, vol. 46(3), pages 271-303, September.
    16. Singgih Wijayana & Sidney J. Gray, 2019. "Institutional Factors and Earnings Management in the Asia-Pacific: Is IFRS Adoption Making a Difference?," Management International Review, Springer, vol. 59(2), pages 307-334, April.
    17. Chih-Wen Mao & Wen-Chieh Wu, 2019. "Does the government-mandated adoption of international financial reporting standards reduce income tax revenue?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(1), pages 145-166, February.
    18. Mujeeb Saif Mohsen Al-Absy & Ku Nor Izah Ku Ismail, 2019. "Accountants¡¯ Perception on the Factors Affecting the Adoption of International Financial Reporting Standards in Yemen," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(4), pages 128-142, July.
    19. Cheung, Yan-Leung & Qi, Yuehua & Raghavendra Rau, P. & Stouraitis, Aris, 2009. "Buy high, sell low: How listed firms price asset transfers in related party transactions," Journal of Banking & Finance, Elsevier, vol. 33(5), pages 914-924, May.
    20. El-Helaly, Moataz & Ntim, Collins G. & Al-Gazzar, Manar, 2020. "Diffusion theory, national corruption and IFRS adoption around the world," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 38(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:ijodag:v:21:y:2024:i:2:d:10.1057_s41310-023-00192-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.