IDEAS home Printed from https://ideas.repec.org/a/bjz/ajisjr/2125.html
   My bibliography  Save this article

The Expected Effect of Using eXtensible Business Reporting Language (XBRL) on the Extent of Using Ordinary Financial Statements by External Users in Jordan

Author

Listed:
  • Thaer Faisal Abdelrahim Qushtom

Abstract

In 2000, a freely available modern global framework to exchange and communicate business information among business systems has emerged and called the eXtensible Business Reporting Language (XBRL). The XBRL was designed to reduce differences in financial data presentation methods. The current study aimed mainly to find the feasibility of using the XBRL in Jordanian entities and the extent to which the ordinary financial statements can be replaced by the XBRL framework. A quantitative approach was used to collect and analyze data. Accordingly, 187 analyzable questionnaires were distributed and retrieved. The results showed that the majority of respondents are convinced that using the XBRL framework will provide them with relevant, reliable, comparable, timely, and required information. In addition, the coefficient measures showed that there is a significant negative relationship between using the XBRL framework and the use of ordinary financial reports at the significance level of 0.01. Conversely, the results indicated that there is a significant positive relationship between using the XBRL framework and the usefulness of financial information in the planning and decision-making purposes. The results imply that Jordanian companies should turn to use the XBRL framework to present and communicate their financial reports, which will be reflected on increasing the confidence and interest of various users of financial reports in the company's results and management. Further, using the XBRL framework will enhance the planning and decision-making tools of users, which will be reflected on the interest of companies, especially those with good performance.

Suggested Citation

  • Thaer Faisal Abdelrahim Qushtom, 2021. "The Expected Effect of Using eXtensible Business Reporting Language (XBRL) on the Extent of Using Ordinary Financial Statements by External Users in Jordan," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 10, September.
    • Handle: RePEc:bjz:ajisjr:2125
    DOI: https://doi.org/10.36941/ajis-2021-0137
    as

    Download full text from publisher

    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/12653
    Download Restriction: no
    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/12653/12252
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.36941/ajis-2021-0137?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gomaa, Mohamed I. & Markelevich, Ariel & Shaw, Lewis, 2011. "Introducing XBRL through a financial statement analysis project," Journal of Accounting Education, Elsevier, vol. 29(2), pages 153-173.
    2. Jeffrey Unerman & Jan Bebbington & Brendan O’dwyer, 2018. "Corporate reporting and accounting for externalities," Accounting and Business Research, Taylor & Francis Journals, vol. 48(5), pages 497-522, July.
    3. Abdolmohammadi, Mohammad J. & DeSimone, Steven M. & Hsieh, Tien-Shih & Wang, Zhihong, 2017. "Factors associated with internal audit function involvement with XBRL implementation in public companies: An international study," International Journal of Accounting Information Systems, Elsevier, vol. 25(C), pages 45-56.
    4. Guay, Wayne & Samuels, Delphine & Taylor, Daniel, 2016. "Guiding through the Fog: Financial statement complexity and voluntary disclosure," Journal of Accounting and Economics, Elsevier, vol. 62(2), pages 234-269.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cong, Yunyu & Sun, Fangfang & Wang, Fusheng & Ye, Qiang, 2022. "Information assimilation and stock return synchronicity: Evidence from an investor relations management platform," Emerging Markets Review, Elsevier, vol. 53(C).
    2. Imperiale, Francesca & Pizzi, Simone & Lippolis, Stella, 2023. "Sustainability reporting and ESG performance in the utilities sector," Utilities Policy, Elsevier, vol. 80(C).
    3. Elisabeth Sinnewe & Troy Yao & Mahbub Zaman, 2021. "Informing or obfuscating stakeholders: Integrated reporting and the information environment," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3893-3906, December.
    4. Yan Luo & Linying Zhou, 2020. "Textual tone in corporate financial disclosures: a survey of the literature," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 17(2), pages 101-110, September.
    5. Pinto, Inês & Morais, Ana Isabel & Quick, Reiner, 2020. "The impact of the precision of accounting standards on the expanded auditor’s report in the European Union," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 40(C).
    6. Amadxarif, Zahid & Brookes, James & Garbarino, Nicola & Patel, Rajan & Walczak, Eryk, 2019. "The language of rules: textual complexity in banking reforms," Bank of England working papers 834, Bank of England.
    7. Drago, Carlo & Ginesti, Gianluca & Pongelli, Claudia & Sciascia, Salvatore, 2018. "Reporting strategies: What makes family firms beat around the bush? Family-related antecedents of annual report readability," Journal of Family Business Strategy, Elsevier, vol. 9(2), pages 142-150.
    8. Farrell, Michael & Murphy, Dermot & Painter, Marcus & Zhang, Guangli, 2023. "The complexity yield puzzle: A textual analysis of municipal bond disclosures," Working Papers 338, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    9. Luciano Marchi & Sara Trucco, 2017. "La comunicazione al mercato delle performance economico-finanziarie: il ruolo del controllo di gestione," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2017(3), pages 55-78.
    10. Munday, Tim & Brookes, James, 2021. "Mark my words: the transmission of central bank communication to the general public via the print media," Bank of England working papers 944, Bank of England.
    11. Samuel B. Bonsall & Brian P. Miller, 2017. "The impact of narrative disclosure readability on bond ratings and the cost of debt," Review of Accounting Studies, Springer, vol. 22(2), pages 608-643, June.
    12. Chychyla, Roman & Leone, Andrew J. & Minutti-Meza, Miguel, 2019. "Complexity of financial reporting standards and accounting expertise," Journal of Accounting and Economics, Elsevier, vol. 67(1), pages 226-253.
    13. Wang, Fengrong & Mbanyele, William & Muchenje, Linda, 2022. "Economic policy uncertainty and stock liquidity: The mitigating effect of information disclosure," Research in International Business and Finance, Elsevier, vol. 59(C).
    14. Ali Uyar & Simone Pizzi & Fabio Caputo & Cemil Kuzey & Abdullah S. Karaman, 2022. "Do shareholders reward or punish risky firms due to CSR reporting and assurance?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1596-1620, July.
    15. George Drogalas & Konstantinos Petridis & Nikolaos E. Petridis & Eleni Zografidou, 2020. "Valuation of the internal audit mechanisms in the decision support department of the local government organizations using mathematical programming," Annals of Operations Research, Springer, vol. 294(1), pages 267-280, November.
    16. Bliss, Barbara A. & Partnoy, Frank & Furchtgott, Michael, 2018. "Information bundling and securities litigation," Journal of Accounting and Economics, Elsevier, vol. 65(1), pages 61-84.
    17. Hyunkwon Cho & Sunhwa Choi & Robert Kim, 2023. "Less timely earnings announcements and voluntary disclosure," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 50(3-4), pages 524-564, March.
    18. Noh, Suzie & So, Eric C. & Weber, Joseph P., 2019. "Voluntary and mandatory disclosures: Do managers view them as substitutes?," Journal of Accounting and Economics, Elsevier, vol. 68(1).
    19. Sabrina Spallini & Virginia Milone & Antonio Nisio & Patrizia Romanazzi, 2021. "The Dimension of Sustainability: A Comparative Analysis of Broadness of Information in Italian Companies," Sustainability, MDPI, vol. 13(3), pages 1-22, January.
    20. Le, Nhan & Nguyen, Duc Duy & Sila, Vathunyoo, 2021. "Does shareholder litigation affect the corporate information environment?," Journal of Financial Markets, Elsevier, vol. 56(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjz:ajisjr:2125. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Richtmann Publishing Ltd (email available below). General contact details of provider: https://www.richtmann.org/journal/index.php/ajis .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.