The impact of XBRL adoption in PR China

Chunhui Liu, Xin(Robert) Luo, Choon Ling Sia, Grace O'Farrell, Hock Hai Teo

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

37 Citations (Scopus)

Abstract

EXtensible Business Reporting Language (XBRL) is expected to develop into the global data standard for business financial reporting with the potential to change the way that decisions are made. Thus, understanding its value realization in the proper business context is a vitally important issue. This study examines the impact of initial mandatory adoption of XBRL on organizations' cost of capital and transaction costs in PR China. As transaction cost theory predicts, the uncertainty related to the unproven technology increases transaction costs and the cost of capital during the early adoption period. Implications have immediate benefits for regulators, filing organizations, information consumers, the accounting profession, and other stakeholders.
Original languageEnglish
Pages (from-to)242-249
JournalDecision Support Systems
Volume59
Online published14 Dec 2013
DOIs
Publication statusPublished - Mar 2014

Bibliographical note

Full text of this publication does not contain sufficient affiliation information. Related Research Unit(s) information for this record is supplemented by the author(s) concerned.

Research Keywords

  • Business value of information technology
  • Cost of capital
  • Empirical studies
  • Transaction cost theory
  • XBRL (eXtensible Business Reporting Language)

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