Factors associated with companies’ choices of xbrl implementation strategies: Evidence from the u.s. market

Document Type

Article

Abstract

This study investigates factors associated with public companies’ choices of eXtensible Business Reporting Language (XBRL) implementation strategies. These strategies include Disclosure Management Solution (DMS) versus Stand-Alone Solution (SAS), and outsourcing versus in-house XBRL implementation. Using survey data provided by the Financial Executive Research Foundation, we find that perceived helpfulness of educational resources and perceived difficulties with companies’ reporting review process are positively related to the use of DMS. Concerns about XBRL compliance and perceived difficulties with companies’ accounting processes are inversely related to the use of DMS. Moreover, advanced XBRL knowledge and perceived helpfulness of XBRL guidance materials are negatively related to the outsourcing of XBRL implementation. Finally, concerns about XBRL compliance and earnings announcement time lags are positively associated with the outsourcing of XBRL implementation. Our results provide guidance for policymakers in developing XBRL implementation policies and for XBRL service providers in designing XBRL solutions for their clients.

Publication Title

Journal of Information Systems

Publication Date

2019

Volume

33

Issue

3

First Page

75

Last Page

91

ISSN

0888-7985

DOI

10.2308/isys-52185

Keywords

disclosure management solution, in-house, outsource, stand-alone solution, XBRL implementation

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