The Impact Of Financial Reporting Innovation On Accounting Transparency

Accounting transparency is a comprehensive concept of accounting information quality. High accounting transparency is conducive to a smooth and orderly operation of the capital market, and it can help users of accounting information to make reasonable economic decisions. As a classic case of financial reporting innovation, XBRL (eXtensible Business Reporting Language) can reduce the cost of information generation and exchange, be beneficial to information disclosure and transmission, which provides convenience to investors to use financial information. The purpose of this paper is to find out the impact of XBRL on accounting transparency, and provide advice for listed companies, stock exchanges, regulatory authorities,governments and other stakeholders on further improving accounting transparency and promoting XBRL report. According to the different perspectives of accounting transparency, this paper defines the accounting transparency from two aspects: the quality of accounting information creation and the quality of accounting information disclosure, taking Shenzhen Stock Exchange rating, earnings aggressiveness and earnings smoothness as the proxy variables of accounting transparency, using the method of empirical analysis to study. The results of the empirical analysis show that there is significant positive correlation between the accounting transparency overall and the mandatory disclosure of XBRL, and there is no significant correlation between the quality of accounting information creation with XBRL. The conclusion is that disclosure of XBRL can improve the transparency of accounting information overall, but the impact of XBRL on the creation quality is not significant, which means the application of XBRL in internal financial system still has a great development space.