A Research On The Relationship Between XBRL And Capital Market Information Transparency

Since having been promoted by Charles Hoffman in1998and promoted more than ten years, XBRL has been rapidly developed and applied all over the world, and it also has been adopted as standard for financial reporting in many countries. China joined the XBRL International in April2010; in2004, CSRC guided the Shenzhen Stock Exchange and the Shanghai Stock Exchange to carry out a pilot that listed companies that should submit XBRL.However, there is a big gap between the maturity of capital market in China and United States or other western countries. There exist many problems in the capital market. For example, the information disclosure of listed companies in China is not perfect on system design and implementation; lacking accounting information transparency is very serious. Even the market information symmetry is under a serious condition, with some internal transactions and market manipulation. Many typical financial frauds, such as Business of Guangxia, make regulatory agencies, investors and other users promote higher demanding to the disclosure accounting information transparency. Accounting information transparency has drawn increasing concern of the theoretical and practical circles. Therefore, it is necessary to study how the introduction of XBRL affects the transparency of information disclosure of listed companies in China, and it can make more people know and understand XBRL, we also hope to promote the development of XBRL in China by studying this issue.This paper adopts specification research and empirical research to study how XBRL affects the accounting information transparency in China. Firstly this paper combines the characteristics of accounting information transparency with theory of XBRL network financial reporting. It also analyses the relationship between financial reporting based on XBRL standard and the usefulness, reliability, timeliness, disclosure of accounting information; then it analyses the specific impact of XBRL on accounting information transparency from an empirical way.After fully comparing the information transparency indicators chosen by domestic and foreign scholars, this paper selects three indicators as the assessment of accounting information transparency level:the timeliness of accounting information, robustness and surplus radical degrees. This paper uses the extended Jones model as the research model. This paper uses annual data of listed companies in China from2005to2011, and ultimately selects1269companies’data. There are5762samples used to measure the degree of surplus radical, timeliness and robustness. We firstly make descriptive statistical analysis on surplus radical, robustness and timeless, subsequently, we conduct a test on the significance of the overall regression of the model, and we also compare the different regression results; then in empirical analysis of surplus radical degrees, we use linear regression analysis to test the model overall regression significance, and we conduce t-test to the significance of regression coefficient. At last we analyses the relationship between the use of XBRL and surplus radical degrees, as far as to prove the assumptions presented in this article.The study of this paper shows that the timeliness and robustness of accounting information are promoted by XBRL’s using, and there is significant difference in terms of robustness.we can further validate the hypothesis by regression comparison. According to the analysis of surplus radical degrees model, we can know that the use of XBRL is positive correlation with information transparency, and it is significantly related to information transparency at different levels.So we can come to the conclusion that the use of XBRL can improve the transparency of information disclosure。This paper consists of five parts. The first part is the introduction, mainly introducing the research background and practical significance, research methods and the structure of this paper. The second part is a literature review that combs research literature about how XBRL affect accounting information transparency at home and abroad. The third part is empirical analysis.Firstly.it introduces the basic theory of XBRL, definition of information transparency and the applications of XBRL at home and abroad. Then it is research hypothesis, according to theoretical analysis and based on Indicators that can measure of the transparency of information, we hypothesize that the use of XBRL is positive correlation with timeliness and robustness of accounting information, and it is negative correlation with the surplus radical degree of accounting information assumptions. The fifth part is about empirical analysis, it analyses mainly on the results of the regression of the annual reports data of listed companies in China, the results show that the use of XBRL can significantly improve the transparency of information disclosure of listed companies in China.The fifth part draws the conclusions, and it also puts forward some policy recommendations.