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http://dx.doi.org/10.13106/jafeb.2021.vol8.no1.675

Stock Reaction to the Implementation of Extensible Business Reporting Language  

JUNUS, Onong (Department of Accounting, Faculty of Economics and Business, Universitas Airlangga)
IRWANTO, Andry (Department of Accounting, Faculty of Economics and Business, Universitas Airlangga)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.1, 2021 , pp. 675-685 More about this Journal
Abstract
The purpose of this study is to examine the reaction of stock prices on the implementation of Extensible Business Reporting Language (XBRL) in companies listed on the Indonesia Stock Exchange (IDX). Using the event study method and calculating abnormal returns of the 2015 financial statements of 462 companies listed on the IDX, findings showed that 49 companies have not applied the XBRL format in their financial statements. Based on the results of the Average Abnormal Return (AAR) and Cumulative Average Abnormal Return (CAAR) values, using the one-sample test, investors react to shares in companies that have not implemented XBRL and who have implemented XBRL; however, based on the independent t-test based on average values there are differences between companies that have not applied XBRL and those who have implemented XBRL. This research only looks at the one-year implementation of XBRL in financial reporting (2015), then the research does not separate which companies are on time in the delivery of financial statements to the public through the IDX website. Our research contributes to the understanding of the use of XBRL in corporate financial reporting because before the XBRL financial reporting format was published, the company had published a financial statement format based on the legal provisions of financial statements in Indonesia.
Keywords
Extensible Business Reporting Language (XBRL); Stock Price Reaction; Financial Statement;
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