The Influence of XBRL Adoption on Financial Reporting Timeliness: Evidence from Indonesian Banking Industry

Tri Utami Lestari, Kartika Pratiwi Putri, Meita Candra Devi

Abstract


This study examines the impact of eXtensible Business Reporting Language (XBRL) adoption on financial reporting timeliness. The population are banking companies listed on the Indonesian Stock Exchange (IDX) between 2015 and 2019. The samples are 38 Indonesian banks or 190 bank-year observations. Using logistic regression this study demonstrates the XBRL adoption positively affects financial reporting timeliness.  The findings confirm that XBRL adoption benefit banks as it stimulates automation process, improves cost-effectiveness, fasten data collection, enhances data reliability and accuracy, and thus it may lead to better business decision-making. The positive signal provided by the adopters of XBRL will influence the decisions of shareholders, which in turn will lead to share ownership increase.

Keywords


Financial Reporting Timeliness; XBRL

Full Text:

PDF

References


Abdelsalam, O., & El-Masry, A. (2008). The impact of board independence and ownership structure on the timeliness of corporate internet reporting of Irish-listed companies. Managerial Finance, 34(12), 907–918. https://doi.org/10.1108/03074350810915842

Abernathy, J. L., Kubick, T. R., & Masli, A. (2018). Evidence on the relation between managerial ability and financial reporting timeliness. International Journal of Auditing, 22(2), 185–196. https://doi.org/https://doi.org/10.1111/ijau.12112

Aksoy, M., Yilmaz, M. K., Topcu, N., & Uysal, Ö. (2021). The impact of ownership structure, board attributes and XBRL mandate on timeliness of financial reporting: evidence from Turkey. Journal of Applied Accounting Research, 22(4), 706–731. https://doi.org/10.1108/JAAR-07-2020-0127

Alles, M., & Debreceny, R. (2012). The evolution and future of XBRL research. Journal of Accounting Information Systems, 13(2), 83–90. https://doi.org/http://dx.doi.org/10.1016/j.accinf.2012.03.006

Andriana, D., & Arina Raspati, N. (2015). Pengaruh Profitabilitas Dan Kepemilikan Publik Terhadap Ketepatan Waktu Penyampaian Laporan Keuangan. Jurnal Riset Akuntansi Dan Keuangan, 3(2), 675. https://doi.org/10.17509/jrak.v3i2.6612

Arifin, J., & Wardani, E. A. (2016). N.J Bennet. Jurnal Akuntansi & Auditing Indonesia 20(1) Juni 2016, 20(1), 1–10.

Arnold, V., Bedard, J., & Phillips, J. (2012). The impact of tagging qualitative financial information on investor decision making: Implications for XBRL. International Journal Accounting Information System, 13(1), 2–20. https://doi.org/http://dx.doi.org/10.1016/j.accinf.2011.12.002

Astria, R. (2012). Sistem Akuntansi Berbasis Komputer. Universitas Gunadarma.

Azhari, F., & Nuryatno, M. (2019). Peran Opini Audit Sebagai Pemoderasi Pengaruh Profitabilitas, Ukuran Perusahaan, Kepemilikan Pelaporan Keuangan. Universitas Trisakti Jakarta, 5(1), 1–18.

Bank Indonesia. (2013). Outlook Perbankan Syariah. Bank Indonesia.

Baridwan, Z. (1995). Sistem Akuntansi Penyusunan Prosedur dan Metode. BPFE.

Chang, C., & Jarvenpaa, S. (2005). Pace of Information Systems Standards Development and Implementation: The Case of XBRL. Electronic Markets, 15(4), 365–377. https://doi.org/10.1080/10196780500303029

Chen, S., Li, W., & Wu, D. (2014). How XBRL Affects the Cost of Equity Capital? Evidence from Emerging Market. In SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2403428

Du, H., & Wu, K. (2018). XBRL Mandate and Timeliness of Financial Reporting: Do XBRL Filings Take Longer? Journal of Emerging Technologies In Accounting, 15(1), 57–75. https://doi.org/10.2308/jeta- 52094

Dyer, J., & Aj, M. (1975). Timeliness of Australian Annual-Report. Journal of Accounting Research, 13(2), 204–219. https://doi.org/https://econpapers.repec.org/scripts/redir.pf?u=https%3A%2F%2Fhdl.handle.net%2F10.2307%252F2490361;h=repec:bla:joares:v:13:y:1975:i:2:p:204-219

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. https://doi.org/10.1016/j.jaccedu.2014.04.003

Hoitash, R., Hoitash, U., & Morris, L. (2021). eXtensible Business Reporting Language (XBRL): A Review and Implications for Future Research. Auditing: A Journal of Practice & Theory, 40(2), 107–132.

IDX. (2021). XBRL.

Ilias, A., & Ghani, E. K. (2015). Examining the Adoption of Extensible Business Reporting Language among Public Listed Companies in Malaysia. Procedia Economics and Finance, 28(April), 32–38. https://doi.org/10.1016/s2212-5671(15)01078-3

Indrayenti, & Ie, C. (2016). Analisis Faktor-Faktor yang Mempengaruhi Ketepatan Waktu Penyampaian Laporan Keuangan Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia (Studi Empiris Pada Perusahaan Sektor Industri Dasar dan Kimia). Jurnal Akuntansi Dan Keuangan, 7(1), 121–135.

Iyoha, F. O. (2012). Company Attributes and the Timeliness of. Sayco Secured Assets Yield Corporation Investment Banking, 1(3), 41–49.

Kartikasari, L., & Ifada, L. M. (2010). Analisis Ketepatan Waktu Penyampaian Laporan Keuangan Perusahaan Go Publik di Pasar Modal. Ekobis, 11(1), 415–424.

Mahardika, S. A., & Harahap, S. N. (2018). Analisis Pengaruh Adopsi Xbrl Terhadap Asimetri Informasi Dengan Corporate Governance Sebagai Pemoderasi (Analysis of Xbrl Adoption’S Impact on Information Asymmetry, With Corporate Governance As Moderating Variable). Jurnal Akuntansi Dan Keuangan Indonesia, 15(2), 217–236. https://doi.org/10.21002/jaki.2018.12

Murti, W. (2021). Timeliness of corporate annual financial reporting in indonesian banking industry. Accounting, 7(3), 553–562. https://doi.org/10.5267/j.ac.2021.1.003

Muslichah. (2020). The Effect of Environmental, social disclosure, and financial performance on firm value. Jurnal Akuntansi Dan Auditing Indonesia (Jaai), 24(1), 22–32.

Nurhasanah, N., & Harahap, S. (2018). Pengaruh Penerapan Xbrl terhadap Cost of Equity di Perusahaan Terbuka. Simposium Nasional Akuntansi XXI.

Nurmiati. (2016). Faktor-Faktor yang Mempengaruhi Ketepatan Waktu Pelaporan Keuangan Nurmiati Fakultas Ekonomi Dan Bisnis Universitas Mulawarman, Indonesia. Jurnal Ekonomi Dan Manajemen, Vol 13(2), 1–17.

Oswari, T., & Januarianto, A. (2017). Extensible business report language (XBRL) implementation of financial reporting standard in Indonesian banking industry. International Journal of Economic Research, 14(5), 219–225.

Owusu, & Ansah, S. (2000). Timeliness of Corporate Financial Reporting in Emerging Capital Market: Empirical Evidence from The Zimbabwe Stock Exchange. Journal Accounting and Business Research, 30(3), 241–254.

Pinto, P., & Joseph, N. R. (2017). Capital structure and financial performance of banks. International Journal of Applied Business and Economic Research, 15(23), 303–312.

Prasetyo, H., & Apandi, N. N. (2019). Does Xbrl Improve the Quality of Financial Statements in the Banking Industry? The International Journal of Business Review (The Jobs Review), 2(2), 137–158. https://doi.org/10.17509/tjr.v2i2.20499

Rashty, B. J. (2013). An Overview of XBRL Compliance. CPA Journal, 83(8), 67–72.

Rupang, A. D., Falah, S., & Pangayow, B. J. . (2019). Pengaruh penerapan xbrl terhadap ketepatan waktu pelaporan keuangan (studi empiris pada indeks lq45 di Bursa Efek Indonesia Tahun 2016-2018). Jurnal Akuntansi Dan Keuangan Daerah, 14(2), 38–55. https://doi.org/10.52062/jakd.v14i2.1454

Saleh, R., & Susilowati, I. (2004). Studi Empiris Ketepatan Waktu Pelaporan Keuangan Perusahaan Manufaktur Di Bursa Efek Jakarta. Jurnal Bisnis Strategi, 13, 66–80.

Saragih, A. H., Soraya, A., & Hendrawan, A. (2021). A Decade of XBRL Research in Accounting in Indonesia: A Literature Study. The Indonesian Journal of Accounting Research, 24(02). https://doi.org/10.33312/ijar.522

Setiawan, I., Asnawi, H. F., & Sofyani, H. (2016). Apakah Ukuran, Profitabilitas, dan Praktik Manajemen Laba Memengaruhi Tingkat Pelaksanaan dan Pelaporan Islamic Social Reporting Pada Perbankan Syariah Di Indonesia? Jurnal Dinamika Akuntansi Dan Bisnis, 3(2), 65–76. https://doi.org/10.24815/jdab.v3i2.5387

Steenkamp, L. P., & Nel, G. F. (2012). The adoption of XBRL in South Africa: An empirical study. Electronic Library, 30(3), 409–425. https://doi.org/10.1108/02640471211241672

Stergiaki, E., Stavropolous, & Lalou, T. (2013). Acceptance and Usage of Extensible Business Reporting Language: an Empirical Review. Journal of Social Sciences, 9(1), 14–21. https://doi.org/10.3844/jssp.2013.14.21

Sulistyo, A. W. N. (2010). Analisis Faktor-Faktor yang Berpengaruh Terhadap Ketepatan Waktu Penyampaian Laporan Keuangan Pada Perusahaan yang Listing di Bursa Efek Indonesia Periode 2006-2008. Universitas Diponegoro.

Suryanto, J., & Pahala, I. (2016). Analisa Faktor – Faktor Yang Berpengaruh Terhadap Ketepatan Waktu Pelaporan Keuangan (Studi Empiris Pada Perusahaan Otomotif Dan Komponen Dan Telekomunikasi Yang Terdaftar Di Bursa Efek Indonesia). Jurnal Wahana Akuntansi, 11(2), https://doi.org/10.21009/wahana.112.02

Valentinetti, D., & Rea, M. A. (2011). Adopting XBRL in italy: Early evidence of fit between italian GAAP taxonomy and current reporting practices of non-listed companies. International Journal of Digital Accounting Research, 11(May 2014), 45–67. https://doi.org/10.4192/1577-8517-v11_3

Wada. (2013). XBRL In Asia and Oceania.

Wagenhofer, A. (2007). Economic consequences of internet financial reporting. New Dimensions of Business Reporting and XBRL, 55(October), 99–123. https://doi.org/10.1007/978-3-8350-9633-2_5

Wijayanti, I. (2020). Timeliness Of Financial Statements Submission In Industrial Era 4.0 Case study Of Chemical Sector Companies. Eksis: Jurnal Riset Ekonomi Dan Bisnis, 15(1), 1–10.

XBRL International. (2021). An Introduction to XBRL.

Yoon, H., Zo, H., & Ciganek, A. P. (2011). Does XBRL adoption reduce information asymmetry? Journal of Business Research, 64(2), 157–163. https://doi.org/10.1016/j.jbusres.2010.01.008




DOI: https://doi.org/10.24815/jdab.v8i2.21335

Refbacks

  • There are currently no refbacks.


Published by:

Accounting Department supported by IAI KAPd Wilayah Aceh
Faculty of Business and Economics
Syiah Kuala University
Kopelma Darussalam, Banda Aceh, Indonesia - 23111
ISSN: 2355-9462, E-ISSN: 2528-1143

 

Creative Commons License
Jurnal Dinamika Akuntansi dan Bisnis by Prodi Akuntansi Universitas Syiah Kuala is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at http://www.jurnal.unsyiah.ac.id/JDAB/index.