alexa Does XBRL Adoption Imporve Information Asymmetry? Evide
ISSN: 2375-4389

Journal of Global Economics
Open Access

OMICS International organises 3000+ Global Conferenceseries Events every year across USA, Europe & Asia with support from 1000 more scientific Societies and Publishes 700+ Open Access Journals which contains over 50000 eminent personalities, reputed scientists as editorial board members.

Open Access Journals gaining more Readers and Citations

700 Journals and 15,000,000 Readers Each Journal is getting 25,000+ Readers

This Readership is 10 times more when compared to other Subscription Journals (Source: Google Analytics)

Research Article

Does XBRL Adoption Imporve Information Asymmetry? Evidence from Taiwan Public Companies

Tzu-Yi F1*, Fengyi L2, Shih-Hsuan C2 and Kwo-Liang C3

1Department of Political Science, Fu Hsing Kang College, National Defense University, Taiwan

2Department of Business Management, National Taipei University of Technology, Taiwan

3Information Technology Division, Small and Medium Enterprise Administration, Ministry of Economic Affairs, Taiwan

*Corresponding Author:
Tzu-Yi F
Department of Political Science
Fu Hsing Kang College
National Defense University, Taiwan
Tel: +886-2-2895-4012
E-mail: [email protected]

Received: December 01, 2015; Accepted: January 19, 2016; Published: January 22, 2016

Citation: Tzu-Yi F, Fengyi L, Shih-Hsuan C, Kwo-Liang C (2016) Does XBRL Adoption Imporve Information Asymmetry ? Evidence from Taiwan Public Companies. J Glob Econ 4:172. doi:10.4172/2375-4389.1000172

Copyright: © 2016 Tzu-Yi F, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

 

Abstract

This paper examines whether or not XBRL (eXtensible Business Reporting Language) adoption reduces information asymmetry in Taiwan’s Public companies. Recently, XBRL and International Financial Reporting Standards (IFRS) have gradually received substantial attention in the accounting field and the international capital market. Users of financial information can analyze and convert financial reports into the same format by using XBRL. This study evaluated whether XBRL adoption reduced information asymmetry. Prior scholars have used bid-ask spread as a proxy variable of information asymmetry to explore whether XBRL adoption reduced information asymmetry. This study focused on information asymmetry in Taiwan’s capital market. In addition to using bid-ask spread as a proxy variable of information asymmetry, we used stock turnover ratio and earnings volatility as proxy variables for measuring the level of information asymmetry. The results of this study demonstrated that XBRL adoption significantly affects the information-asymmetry proxy variables and that effectively reduce information asymmetry in Taiwan’s capital market. Based on these findings, the government should promote the XBRL usages in financial reporting and require XBRL adoption by all public companies to enable financial information users XBRL.

Keywords

Share This Page

Additional Info

Loading
Loading Please wait..
 
Peer Reviewed Journals
 
Make the best use of Scientific Research and information from our 700 + peer reviewed, Open Access Journals
International Conferences 2017-18
 
Meet Inspiring Speakers and Experts at our 3000+ Global Annual Meetings

Contact Us

 
© 2008-2017 OMICS International - Open Access Publisher. Best viewed in Mozilla Firefox | Google Chrome | Above IE 7.0 version
adwords