The Impact of Extensible Business Reporting Language on Firm Performance Using the Generalized Method of Moments (GMM)

Document Type : Original Article

Authors

1 Assistant Professor of Accounting, Yazd University, Yazd, Iran

2 M.A. in Accounting, Isfahan University, Isfahan, Iran

3 M.A. in Accounting, Yazd University, Yazd, Iran

Abstract

Parallel to development of computer and the internet in society, methods of notification have changed, and following that, companies have turned to utilize these modern approaches to introduce themselves. However, in spite of using Internet, interpretation and examination of financial information of the firms and comparison between them is not an easy task, because firms, albeit following accounting standards, use their preferred format such as EXCEL, WORD, PDF, etc. to report information. On this basis, in order to solve this problem and form a standard and common structure in financial reporting, eXtensible Business Reporting Language has been developed and introduced. The current study addresses the effect of eXtensible Business Reporting Language on firm performance by using GMM. Results from examing the research models shows that with implementation of eXtensible Business Reporting Language, Market-to-Book value of stocks and firm’s Return of Assets (ROA) improve compared to the period before implementing eXtensible Business Reporting Language. Also running eXtensible Business Reporting Language has no more effect on Market-to-Book value of stocks and ROA in firms not under authority of the state compared to public firms.

Keywords

Journal of Iranian Accounting Review
Volume 3, Issue 12
December 2016
Pages 65-82

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