Adoption of Extensible Business Reporting Language and  Information Asymmetry

Ni Wayan Ristiari Jananti; Made Gede Wirakusuma; Eka Ardhani Sisdyani

doi:10.24843/

Authors

Ni Wayan Ristiari Jananti Faculty of Economics and Business, Universitas Udayana, Indonesia
Made Gede Wirakusuma Faculty of Economics and Business, Universitas Udayana, Indonesia
Eka Ardhani Sisdyani Faculty of Economics and Business, Universitas Udayana, Indonesia

DOI:

https://doi.org/10.24843/

Keywords:

Extensible Business Reporting Language, Information Asymmetry, Bid Ask Spread

Abstract

The research objective is to verify the effect of the adoption of Extensible
Business Reporting Language (XBRL) on information asymmetry in
companies listed on the IDX. The sample was selected using a purposive
sampling technique which was then analyzed using multiple linear
regression. The research sample consisted of 329 companies with a total
sample of 1,974 companies being observed. The results of this study
show that the adoption of XBRL has a positive effect on information
asymmetry. Firm size and turnover ratio control variables were found
to have a negative effect on information asymmetry. The research results
have implications for the gap in information distribution and technology
acceptance between large and small investors. XBRL can help reduce
data aggregation costs, but investors must then understand how to
derive the informational benefits of new data. Therefore, investors must
weigh the costs of data aggregation against the benefits when deciding
whether to use new technologies that are voluntary or mandatory.

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