Research On The Influence Of XBRL On The Corporate Earning Quality

Under the background of capital market,the disclosed financial report information of listed companies is the important decision basis for investors.The increase of information content can contribute to the improvement of earnings quality.However,most of the traditional financial reports are static and of less flexibility.It is difficult to carry out secondary data progress with low error rate.Thus,XBRL financial report technique,which was proposed in 20 th century,make up the shortage of traditional financial report with long cycle and less flexibility.It transports the financial report information to external users more timely and efficiently.Recently,XBRL technique is applied more and more in China capital market.The application of XBRL technique would lead to the active change of stock price,thus influencing earnings quality.Consequently,the topic whether the application of XBRL technique in China companies would influence earning quality is studied in this paper.Financial report of 220 listed companies in Shanghai Stock Market was studied through event analysis.Firstly,the cumulative excess return of window period was calculated in this paper.Then the signed rank of non-parameter matching samples was applied to verify the difference of cumulative excess return before and after disclosing financial report.At last,regression analysis was applied to verify the influence of financial report on earnings quality.Through the empirical analysis,the research results showed that the cumulative abnormal returns of sample companies in Shanghai Stock Market have significant difference before and after XBRL,earnings quality after the disclosure was higher than before the disclosure.In addition,based on the cross-sectional regression and panel data regression results,it both showed that XBRL could positively promote earnings quality,which reflected that XBRL of financial report can improve enterprise performance.The conclusion was robust in different industries as well as in different ownership of enterprises.However,the active effect of XBRL technique on the manufacturing industry was higher than the service industry,and the active effect on non-state sector was higher than the state sector.