XBRL General Classilfication Criteria Effects On Quality Of Accounting Information

Since1998Chahes Hoffman has been put forward the XBRL, many countries have been using XBRL standards for financial reporting. As early as2004, china had asked listed companies to release financial reports on SSE (Shanghai Stock Exchange) and SZSE (Shenzhen Stock Exchange) using XBRL format. In2009, both SSE and SZSE had open their XBRL financial reports Platform, Visible, the development and application of XBRL technical standards in our country had been very rapidly and successfully. Although SSE and SZSE both have successfully carried out XBRL financial report work, the XBRL classification standard they applied had been developed separately, there had been some certain differences in some degree and there was no XBRL General Classification Criteria that time. Since the original intention of China introducing XBRL is to ensure the financial information reliability validity and achieve the financial chain data to the free exchange of financial information, in2010the ministry of finance released<General Classification Criteria of Accounting Standard for Business Enterprises>. In addition, about550Chinese A-share listed companies were ordered to apply this "General Classification Criteria" since2011. One of the biggest advantages is that it can improve the quality of accounting information and the "General Classification Criteria" is a big leap of XBRL application.Therefore, there has necessary to through empirical study to research whether general classification criteria can improve the quality of financial information or not. We examine whether general classification criteria adoption by publicly traded firms which mentioned above is related to the level of accounting accruals (which represent quality of financial information in this study) the firms report in the pre-GCC versus post-GCC periods. We use the extent of earning management to measure the Accounting Information Quality, after the T test of mean earning management of pre-GCC and post-GCC’s we see significant discrepancy between the two means. Then we exam the parsons correlation association and the multivariate regression analysis of the main model of our research, the result shows XBRL-GCC application is significantly negatively correlate to the extent of earning management which is proxy variable of the Accounting Information Quality. In conclusion, this study provide evidence for the effectiveness of XBRL-GCC in improving Accounting Information Quality.