Volume 16 Issue 2, August 2021

 

ARTICLE INFO
Article History:
Received: 4 February 2021
Accepted: 16 March 2021
Published: 31 August 2021

ASIA-PACIFIC MANAGEMENT ACCOUNTING JOURNAL. VOL. 16 ISSUE 2
https://doi.org/10.24191/APMAJ.V16i2-04

THE IMPACT OF ADOPTION OF THE XBRL ON THE DEVELOPMENT OF STOCK MARKETS


Wafa Sassi1, Hakim Ben Othman2 and Khaled Hussainey3*

1University of Manouba, Tunisia
2American University of Malta, Malta
3Portsmouth Business School,
Portsmouth University, United Kingdom



ABSTRACT
The paper examines the impact of adoption of the eXtensible Business Reporting Language (XBRL) on the development of stock markets using a large international sample. Our analysis was based on panel estimation techniques for 18 countries for a period of 20 years from 2000 to 2019. Our analysis provided empirical evidence that the adoption of the XBRL has a negative impact on the development of stock markets. This implies that strict policies are needed for the successful adoption of the XBRL and also a mechanism is needed to ensure that stakeholders understand the value of the information provided by the XBRL formatted financial reports.

Keywords: XBRL, development of capital markets, panel estimation techniques, cross-countries study