Can The Reduction Of Information Processing Costs Convey More Firm-specific Information?

XBRL,the full name is Extensible Business Reporting Language,is a new financial report format derived from the application of Internet XML technology in the field of business reporting.XBRL financial reports have the advantages of being less error-prone,easy format conversion,convenient comparison,dynamic analysis,and real-time sharing.At present,XBRL financial reports It has been widely implemented and applied worldwide.In theory,XBRL financial reports greatly facilitate the acquisition and processing of information,so it can effectively reduce the information cost of information users,and the stock price contains more firm-specific information and improves information efficiency.In order to verify the implementation effect of XBRL in China,this article uses China’s A-share listed companies from 2004 to 2019 as a sample,and excluding financial industries,calculate the characteristic volatility with the standard deviation of the regression residual obtained from the return of the sample company’s individual stock returns to the average market return,and use it as an indicator to measure the information content of the stock price,analyze the impact of the application of XBRL financial reports on the information content of the stock price,and test the implementation effect of XBRL in China.The results shows that:(1)the application of XBRL financial reports can increase the information content of stock prices;(2)the companies with lower accounting information transparency have a more obvious effect of implementing XBRL financial reports to increase the information content of stock prices;(3)non-state-owned holding companies have a more obvious effect of implementing XBRL compared with state-owned holding companies.The innovation of this article is to select characteristic volatility as a measure of stock price information content,and use accounting information transparency as a measure to test whether companies with different accounting information transparency have different effects in implementing XBRL financial reporting.