Title
Voluntary XBRL Adopters and Firm Characteristics: An Empirical Analysis
Document Type
Article
Publication Date
2012
Keywords
XBRL; interactive reporting; voluntary adoption; logistic regression; information asymmetry
Disciplines
Accounting
Abstract
Some of the governance weaknesses stem from the information asymmetry between insiders and the investing public. One way to mitigate the information asymmetry problem is to enhance accounting disclosures through XBRL format. In this paper, we analyze financial characteristics of voluntary adopters of XBRL. We build a multivariate logistic regression model to examine the relationship between firm characteristics and voluntary XBRL adopters. The new results of this study indicate that plant intensity (political costs), PE ratio (growth), and inventory ratio (complexity) are useful in discriminating voluntary “XBRL adopters” from non-adopters. We also confirm prior results with respect to firm size and debt ratio. We also build a multiple regression model and use the Governance Score developed by Brown and Caylor (2006) to further investigate the relationship between corporate governance rating and operating performance for voluntary XBRL adopters. Our results indicate that current ratio (liquidity), size, and auditor type are associated with corporate governance rating for voluntary adopters of XBRL.
Publication Title
The International Journal of Digital Accounting Research
Volume
12
First Page
93
Last Page
119
ISSN
1577-8517
Recommended Citation
Ragothaman, S. (2012). Voluntary XBRL Adopters and Firm Characteristics: An Empirical Analysis. The International Journal of Digital Accounting Research, 12, 93-119.