The Impact of Adoption of XBRL on Information Risk in Representative Countries of Scandinavian Region

Valentina Tohang, Michellen Lan


This study aimed to examine the impact of the adoption of eXtensible Business Reporting Language (XBRL) in reduced the information risk of financial reporting disclosures. Information transparency, information asymmetry, the efficiency of the information and also the quality of the information disclosures will impact upon information risk. An increased of information risk and information asymmetry will reduced transparency and efficiency of the financial disclosures due to the unqualified financial and non-financial information provided by the companies (Kim, Kim, & No, 2011). Event return volatility (ERV) used to represent the occurrence of information risk. Used a sample of listed companies in the Scandinavian region of the European Union (EU), we found that XBRL adoption had lowered the occurrence of information risk. This finding supported by prior studies which stated, that a decrease in the degree of ERV, as a proxy of lower information risk, may directly impact the information quality, information efficiency and information transparency. By detected the existence of information risk, stakeholders can more aware of the necessity to ensured the quality of the reporting information disclosure. This paper was also highlights the benefits of adopting XBRL as a reporting standard to improved company’s reporting disclosure.



Disclosure; Efficiency; Event Return Volatility; Information Risk; Information Quality; Internet Reporting; XBRL


Alimohammadi, D. (2003). Meta-tag: A means to control the process of Web indexing. Online Information Review, 27(4), 238–242.

Anagnostopoulou, S. C., & Tsekrekos, A. E. (2015). Accounting quality, information risk, and implied volatility around earnings announcements. Journal of International Financial Markets, Institutions, and Money, 34, 188–207.

Beattie, V., & Pratt, K. (2003). Issues concerning web-based business reporting: an analysis of the views of interested parties. The British Accounting Review, 35(2), 155–187.

Bhasin, M. (n.d.). XBRL: An innovative & global financial reporting standard.

Blankespoor, E., Miller, B. P., & White, H. D. (2014). Initial evidence on the market impact of the XBRL mandate. Review of Accounting Studies, 19(4), 1468–1503.

Bonsòn, E. (2001). The role of XBRL in Europe. The International Journal of Digital Accounting Research, 1(2), 101–110.

Bonsón, E., Cortijo, V., & Escobar, T. (2009). Towards the global adoption of XBRL using International Financial Reporting Standards (IFRS). International Journal of Accounting Information Systems, 10(1), 46–60.

Bonsón, E., & Escobar, T. (2006). Digital reporting in Eastern Europe: An empirical study. International Journal of Accounting Information Systems, 7(4), 299–318.

Brown, S., Hillegeist, S. A., & Lo, K. (2009). The effect of earnings surprises on information asymmetry. Journal of Accounting and Economics, 47(3), 208–225.

Bushee, B. J., & Noe, C. F. (2000). Corporate disclosure practices, institutional investors, and stock return volatility. Journal of Accounting Research, 38, 171–202.

CESR. (2010). Development of Pan-European access to financial information disclosed by listed companies.

Chen, Y. -C. (2012). A comparative study of e-government XBRL implementations: The potential of improving information transparency and efficiency. Government Information Quarterly, 29(4), 553–563.

Debreceny, R., & Gray, G. L. (2001). The production and use of semantically rich accounting reports on the internet: XML and XBRL. International Journal of Accounting Information Systems, 2(1), 47–74.

Debreceny, R., Gray, G. L., & Rahman, A. (2003). The determinants of internet financial reporting. Journal of Accounting and Public Policy, 21(4), 371–394.

Eierle, B., Ojala, H., & Penttinen, E. (2014). XBRL to enhance external financial reporting: Should we implement or not? Case company X. Journal of Accounting Education, 32(2), 160–170.

Elky, S. (2006). An introduction to information systems risk management. Retrieved from

Enachi, M., & Andone, I. I. (2015). The progress of XBRL in Europe–projects, users, and prospects. Procedia Economics and Finance, 20, 185–192.

ESMA. (n.d.). European securities and market authority.

European Commission. (n.d.). EU local offices and information points.

Francis, J., LaFond, R., Olsson, P., & Schipper, K. (2005). The market pricing of accruals quality. Journal of Accounting and Economics, 39(2), 295–327.

Francis, J., Nanda, D., & Wang, X. (2006). Re-examining the effects of regulation fair disclosure using foreign listed firms to control for concurrent shocks. Journal of Accounting and Economics, 41(3), 271–292.

Gaftea, V. (2014). Socio-economic major risks related to the information technology. Procedia Economics and Finance, 8, 336–345.

Gitman, L. J. (2009). Principal of Managerial Finance. US: Pearson Education Inc.

Hannon, N. (2005). XBRL fundamentals. Strategic Finance, 86(10), 57–58.

He, W. P., Lepone, A., & Leung, H. (2013). Information asymmetry and the cost of equity capital. International Review of Economics & Finance, 27, 611–620.

Inchausti, B. G. (1997). The influence of company characteristics and accounting regulation on information disclosed by Spanish firms. European Accounting Review, 6(1), 45–68.

Jiang, G., Lee, C. M., & Zhang, Y. (2005). Information uncertainty and expected returns. Review of Accounting Studies, 10(2–3), 185–221.

Kernan, K. (2008). XBRL around the world. Journal of Accountancy, 206(4), 62.

Kim, J. W., Kim, J. H., & No, W. G. (2011). The effects of XBRL disclosures on information environment in the market: Early evidence.

Kothari, S. P., Li, X., & Short, J. E. (2009). The effect of disclosures by management, analysts, and business press on cost of capital, return volatility, and analyst forecasts: A study using content analysis. The Accounting Review, 84(5), 1639–1670.

Lester, W. F. (2007). XBRL: The new language of corporate financial reporting. Business Communication Quarterly, 70(2), 226–231.

Leuz, C., & Verrecchia, R. E. (2000). The economic consequences of increased disclosure (digest summary). Journal of Accounting Research, 38, 91–124.

Li, Y., Roge, J. N., Rydl, L., & Crews, M. (2006). Information technology addresses transparency: the potential effects of XBRL on financial disclosure. Issues in Information Systems, 7(2), 241–245.

Lymer, A. (1999). Internet and the future of reporting in Europe. European Accounting Review, 8(2), 289–301.

Müller-Wickop, N., Schultz, M., & Nüttgens, M. (2013). XBRL: Impacts, issues, and future research directions. Enterprise Applications and Services in the Finance Industry, 135, 112–130.

Ponte, E. B., Gallego, V. C., & Rodríguez, T. E. (2009). A Delphi investigation to explain the voluntary adoption of XBRL. The International Journal of Digital Accounting Research, 9(15), 193–205.

Rayner, N., & Chandler, N. (2008). XBRL will enhance corporate disclosure and corporate performance management. Gartner.

Sen, K. (2009). Earnings surprise and sophisticated investor preferences in India. Journal of Contemporary Accounting & Economics, 5(1), 1–19.

Stocken, P. C., & Verrecchia, R. E. (2004). Financial reporting system choice and disclosure management. The Accounting Review, 79(4), 1181–1203.

UK National Archives. (2011). The national archives: Identifying information assets and business requirements.

Venter, J. M. P. (2002). A survey of current online reporting practices in South Africa. Meditari Accountancy Research, 10(1), 209–225.

Verdi, R. S. (2006). Financial reporting quality and investment efficiency. SSRN.

Verrecchia, R. E. (1983). Discretionary disclosure. Journal of Accounting and Economics, 5, 179–194.

Wang, T., Wen, C. Y., & Seng, J.-L. (2014). The association between the mandatory adoption of XBRL and the performance of listed state-owned enterprises and non-state-owned enterprises in China. Information & Management, 51(3), 336–346.

Willis, M., Tesniere, B., & Jones, A. (2003). Corporate communications for the 21st century. A White Paper Discussing the Impact of Internet Technologies on Business Reporting.

Wu, J., & Vasarhelyi, M. (2004). XBRL: A new tool for electronic financial reporting. Business Intelligence Techniques, 73–92.

Full Text: PDF


  • There are currently no refbacks.

Pendaftaran sebelum tgl 11 Januari 2018 (early bird) mendapat potongan Rp100.000 per event​. Untuk konfirmasi pendaftaran pada link berikut   ​

WS 2a


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.