Market Reactions to XBRL-Formatted Financial Information: Empirical Evidence from China

Emma Y. Peng, John Shon and Christine Tan
Additional contact information
Emma Y. Peng: School of Business, Fordham University, New York City, New York, USA
John Shon: School of Business, Fordham University, New York City, New York, USA
Christine Tan: School of Business, Fordham University, New York City, New York, USA

International Journal of E-Business Research (IJEBR), 2014, vol. 10, issue 3, 1-17

Abstract: XBRL (eXtensible Business Reporting Language) facilitates the efficient processing/interpreting of corporate financial information by investors. This paper examines market reactions to financial statement filings in China in the period before and after the XBRL mandate in China to assess the extent to which XBRL may impact the processing of financial information. It finds that absolute price reactions of financial statement filings are larger (smaller) in the post-XBRL (pre-XBRL) period. This result holds for the cumulative 3-day window surrounding filings, as well as for each individual day during the event window. This paper also finds similar results for the average volume of trading around these event windows. Consistent with its expectations, its findings suggest XBRL financial statements play a significant role in investors' decision making process.

Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve. ... 018/ijebr.2014070101 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:igg:jebr00:v:10:y:2014:i:3:p:1-17

Access Statistics for this article

International Journal of E-Business Research (IJEBR) is currently edited by Mohammad Nabil Almunawar

More articles in International Journal of E-Business Research (IJEBR) from IGI Global
Bibliographic data for series maintained by Journal Editor ().