Abstract
Purpose - The purpose of this paper is to examine the impact of the mandatory adoption of eXtensible Business Reporting Language (XBRL) on firm’s stock liquidity.
Design/methodology/approach – Using a random effects model, this study examines the impact of the mandatory adoption of XBRL on firm’s stock liquidity of 980 companies pertaining to 13 countries for a period from 2000 to 2016.
Findings – We find that the mandatory adoption of XBRL enhances firm’s stock liquidity. In addition, we find that the impact of the mandatory adoption of XBRL on firm’s stock liquidity is more pronounced in civil law countries than in common law countries.
Originality/value – This paper contributes to the literature on the economic consequences of XBRL especially for the civil law countries by examining the impact of the mandatory adoption of XBRL on firm’s stock liquidity.
Design/methodology/approach – Using a random effects model, this study examines the impact of the mandatory adoption of XBRL on firm’s stock liquidity of 980 companies pertaining to 13 countries for a period from 2000 to 2016.
Findings – We find that the mandatory adoption of XBRL enhances firm’s stock liquidity. In addition, we find that the impact of the mandatory adoption of XBRL on firm’s stock liquidity is more pronounced in civil law countries than in common law countries.
Originality/value – This paper contributes to the literature on the economic consequences of XBRL especially for the civil law countries by examining the impact of the mandatory adoption of XBRL on firm’s stock liquidity.
| Original language | English |
|---|---|
| Number of pages | 26 |
| Journal | Journal of Financial Reporting and Accounting |
| Early online date | 22 Jan 2021 |
| DOIs | |
| Publication status | Early online - 22 Jan 2021 |
Keywords
- XBRL
- cross-country analysis
- liquidity
- civil law
- common law