A Research On Market Effect Of XBRL Financial Disclosure Form

With multi-platform operation of enterprises today, the conversion ofinformation between different forms is difficult, which hinders the exchange ofinformation. XBRL, which deprives from XML, is a standardized language designedto prepare the business reports, disclose the financial information and improve theefficiency of information utilization. SEC final rule33-8529was released on March16,2005, which encourages SEC members to voluntarily use XBRL in financialdisclosure. In cases not imposed by law, voluntary disclosure in such advancedforms of XBRL can convey positive signals to investors. What’s more, XBRLdevelops rapidly these years in our country, which means researches on XBRL areirresistible trends. This thesis about the market effect of XBRL financial disclosureform has great value to spread XBRL in our country.Given this and on the basis of information asymmetry theory and principalagent theory, this thesis researches on the market effect of XBRL financialdisclosure. Using the signal transmission theory and the related research results, thisthesis thinks that information disclosure quality can measure the market effect ofXBRL, and the main measurement of information disclosure quality is informationasymmetry. For the convenience of comparison, the sample is based on the Shanghaistock exchange listed companies, which don’t all adopt the XBRL financialdisclosure form. Using empirical approaches like regression analysis and varianceanalysis, this thesis documents that XBRL has significant effect on informationasymmetry, though the difference is slight. However, when we classify the sampleinto three groups by the firm size, the empirical results show that the effect is moresignificant for big enterprises than for the medium and small-sized ones.On the basis of the empirical results, this thesis analyzes the reasons using theshadowless-lamp-effect theory, and puts forward that we should enlarge the numberof applicant entities, improve the audit quality of XBRL, improve the classificationsystem, and provide appropriate platform.