Subtopic Deep Dive

XBRL Impact on Market Efficiency
Research Guide

What is XBRL Impact on Market Efficiency?

XBRL Impact on Market Efficiency examines how XBRL adoption affects stock price informativeness, trading volume, analyst forecast accuracy, and capital market liquidity.

Studies quantify XBRL's role in enhancing information processing through standardized tagging and real-time data access. Key papers include Efendi et al. (2016) with 40 citations showing incremental information value from XBRL disclosures, and Shan and Troshani (2020) with 35 citations linking digital reporting to value relevance in US and Japan markets. Over 10 papers from the list analyze voluntary and mandatory XBRL filings.

Curated Papers

Key Challenges

Why It Matters

XBRL improves market efficiency by reducing information asymmetry, as evidenced by Cormier et al. (2018) who found voluntary XBRL disclosures enhance stock pricing relevance moderated by governance quality (34 citations). Efendi et al. (2016) demonstrated XBRL provides incremental value beyond HTML filings during voluntary programs, lowering cost of capital. Shan and Troshani (2020) showed digital reporting increases earnings value relevance, aiding investor decisions in US and Japan.

Key Research Challenges

Quantifying Incremental Information Value

Distinguishing XBRL's unique contributions from existing HTML disclosures remains difficult. Efendi et al. (2016) used voluntary filing data to test this, finding marginal benefits in stock reactions (40 citations). Methods struggle with confounding factors like firm size.

Moderating Role of Governance

Corporate governance quality affects XBRL's market impact inconsistently across contexts. Cormier et al. (2018) showed stronger valuation relevance under high governance in voluntary settings (34 citations). Cross-country variations complicate generalizations.

Voluntary vs Mandatory Effects

Separating voluntary adopter self-selection from mandatory XBRL benefits challenges causal inference. Bai et al. (2014) analyzed Japan's mandatory adoption for information environment improvements (23 citations). Endogeneity biases persist in regression designs.

Essential Papers

Digital transformation of business-to-government reporting: An institutional work perspective

Indrit Troshani, Marijn Janssen, Andy Lymer et al. · 2018 · International Journal of Accounting Information Systems · 80 citations

Users’ Perceptions on Internet Financial Reporting Practices in Emerging Markets: Evidence from Jordan

Khaldoon Al‐Htaybat, Khaldoon Al‐Htaybat, Khaled Hutaibat · 2011 · International Journal of Business and Management · 44 citations

This study seeks to explore the perceptions of users regarding Internet financial reporting (IFR) practices inJordan. A questionnaire survey of 200 possible participants of four different user-grou...

An exploration of the potential for studying the usage of investor relations information through the analysis of Web server logs

N. Rowbottom, Amir Allam, Andy Lymer · 2005 · International Journal of Accounting Information Systems · 44 citations

Does the XBRL Reporting Format Provide Incremental Information Value? A Study Using XBRL Disclosures During the Voluntary Filing Program

Jap Efendi, Jin Dong Park, Chandrasekar Subramaniam · 2016 · Abacus · 40 citations

type="main"> This study investigates whether the eXtensible Business Reporting Language (XBRL) reporting format provides incremental information value beyond the same 10K/10Q filings previously pro...

Digital corporate reporting and value relevance: evidence from the US and Japan

Yuan George Shan, Indrit Troshani · 2020 · International Journal of Managerial Finance · 35 citations

Purpose The study improves current understanding concerning the implications of digital corporate reporting technology on the informativeness of accounting information. Design/methodology/approach ...

The Relevance of XBRL Voluntary Disclosure for Stock Market Valuation: The Role of Corporate Governance

Denis Cormier, Dominique Dufour, Philippe Luu et al. · 2018 · Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l Administration · 34 citations

Abstract The aim of this paper is to investigate the relevance for stock market pricing of accounting earnings of voluntary disclosures in XBRL files considering the quality of corporate governance...

Adopting XBRL in Italy: Early evidence of fit between Italian GAAP Taxonomy and current reporting practices of non-listed companies

Diego Valentinetti, Michele A. Rea · 2011 · The International Journal of Digital Accounting Research · 32 citations

XBRL (eXtensible Business Reporting Language) will soon be the leading means of corporate financial reporting.A key feature of its adoption relies on well-defined standard taxonomies, which should ...

Reading Guide

Foundational Papers

Start with Al-Htaybat et al. (2011, 44 citations) for user perceptions baseline, then Rowbottom et al. (2005, 44 citations) on web log usage, and Valentinetti and Rea (2011, 32 citations) on taxonomy fit to ground XBRL adoption studies.

Recent Advances

Prioritize Shan and Troshani (2020, 35 citations) for US-Japan value relevance, Cormier et al. (2018, 34 citations) for governance roles, and Alles et al. (2022, 26 citations) for app-based extensions.

Core Methods

Event studies (Efendi et al., 2016), regression discontinuity on mandates (Bai et al., 2014), and value relevance tests (Shan and Troshani, 2020) dominate, often using abnormal returns, forecast errors, and bid-ask spreads.

How PapersFlow Helps You Research XBRL Impact on Market Efficiency

Discover & Search

Research Agent uses searchPapers and citationGraph to map 250M+ papers, starting from Efendi et al. (2016) to find 40+ related works on XBRL market efficiency. exaSearch uncovers niche studies like Bai et al. (2014) on Japan, while findSimilarPapers expands from Shan and Troshani (2020).

Analyze & Verify

Analysis Agent applies readPaperContent to extract XBRL impact metrics from Efendi et al. (2016), then verifyResponse with CoVe checks claims against citations. runPythonAnalysis replicates regressions from Cormier et al. (2018) using pandas on disclosure data, with GRADE scoring evidence strength for forecast accuracy claims.

Synthesize & Write

Synthesis Agent detects gaps in voluntary vs mandatory XBRL studies, flagging contradictions between US (Efendi et al., 2016) and Japan (Bai et al., 2014). Writing Agent uses latexEditText, latexSyncCitations for 10+ papers, and latexCompile to generate efficiency diagrams via exportMermaid.

Use Cases

"Replicate Efendi et al. (2016) regression on XBRL voluntary disclosures and stock returns"

Research Agent → searchPapers('Efendi XBRL 2016') → Analysis Agent → readPaperContent → runPythonAnalysis(pandas regression on extracted data) → statistical output with p-values and R-squared.

"Write LaTeX review comparing XBRL market efficiency in US vs Japan"

Synthesis Agent → gap detection(Shan Troshani 2020, Bai 2014) → Writing Agent → latexEditText(structured sections) → latexSyncCitations(10 papers) → latexCompile → PDF with citation graph via exportMermaid.

"Find GitHub repos analyzing XBRL datasets for trading volume effects"

Research Agent → citationGraph(Efendi 2016) → Code Discovery → paperExtractUrls → paperFindGithubRepo → githubRepoInspect → CSV of XBRL efficiency scripts and datasets.

Automated Workflows

Deep Research workflow conducts systematic review of 50+ XBRL papers: searchPapers → citationGraph → GRADE all abstracts → structured report on efficiency metrics. DeepScan applies 7-step CoVe chain to verify Shan and Troshani (2020) value relevance claims with runPythonAnalysis checkpoints. Theorizer generates hypotheses linking XBRL taxonomy fit (Valentinetti and Rea, 2011) to liquidity improvements.

Try Doxa for XBRL Impact on Market Efficiency Research

Frequently Asked Questions

What defines XBRL Impact on Market Efficiency?

It measures XBRL's effects on stock informativeness, trading volume, and analyst accuracy via standardized disclosures.

What methods assess XBRL's incremental value?

Efendi et al. (2016) used event studies on voluntary filings to compare XBRL vs HTML stock reactions (40 citations). Regressions test abnormal returns and bid-ask spreads.

Which are key papers?

Efendi et al. (2016, 40 citations) on incremental value; Shan and Troshani (2020, 35 citations) on value relevance; Cormier et al. (2018, 34 citations) on governance moderation.