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An empirical comparison of the effect of XBRL on audit fees in the US and Japan

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  • Shan, Yuan George
  • Troshani, Indrit
  • Richardson, Grant

Abstract

This study examines the effect of eXtensible Business Reporting Language (XBRL) on audit fees, and assesses whether and how this effect varies across different countries. We specifically consider publicly listed firms in the US and Japan over the eight-year period centered around the dates on which XBRL was first mandated for use by publicly listed firms in these jurisdictions. Our comparative results show that XBRL use is inversely associated with audit fees, which are in turn positively associated with firm size. We also find that, overall, XBRL moderates the association between firm size and audit fees in both the US and Japan. However, these moderation effects are weaker among Japanese firms.

Suggested Citation

  • Shan, Yuan George & Troshani, Indrit & Richardson, Grant, 2015. "An empirical comparison of the effect of XBRL on audit fees in the US and Japan," Journal of Contemporary Accounting and Economics, Elsevier, vol. 11(2), pages 89-103.
    • Handle: RePEc:eee:jocaae:v:11:y:2015:i:2:p:89-103
    DOI: 10.1016/j.jcae.2015.01.001
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    Cited by:

    1. Troshani, Indrit & Janssen, Marijn & Lymer, Andy & Parker, Lee D., 2018. "Digital transformation of business-to-government reporting: An institutional work perspective," International Journal of Accounting Information Systems, Elsevier, vol. 31(C), pages 17-36.
    2. Shan, Yuan George & Troshani, Indrit & Tarca, Ann, 2019. "Managerial ownership, audit firm size, and audit fees: Australian evidence," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 35(C), pages 18-36.

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    More about this item

    Keywords

    XBRL; Audit fees; Firm size; Agency theory;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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