Academic journal article Journal of Social Sciences

Acceptance and Usage of Extensible Business Reporting Language: An Empirical Review

Academic journal article Journal of Social Sciences

Acceptance and Usage of Extensible Business Reporting Language: An Empirical Review

Article excerpt

ABSTRACT

Extensible Business Reporting Language (XBRL) is a language based on XML that provides an effective solution for the preparation, presentation and exchange of International Financial Reporting Standards. Many researchers examined the adoption, acceptance or usage of XBRL but none have clarified a direct link between the acceptance of technology and how it affects XBRL users. So, a significant issue to answer is: What is the level of acceptance of XBRL in the European region? Particularly, a new acceptance model was developed based on Technology Acceptance Model 2 (TAM2) in order to test XBRL usage and its impact with five major constructs. The sample consists of 100 listed companies from European Union countries such as United Kingdom, Germany, Spain, Italy, France, Denmark, The Netherlands, Switzerland, Belgium, Luxemburg and Poland. The results reveal that a great number of companies in the European Union are satisfied with the output and the perspectives of XBRL acceptance and usage. The above argument is supported by the positive correlation found in this research among independent constructs and the dependent factors of XBRL acceptance and usage. Europe appears to be a strong supporter of XBRL technology, so non adopters of XBRL can use the results of this study and decide whether XBRL is a useful tool for them or not.

Keywords: XBRL, TAM2, Europe and XBRL Usage

1. INTRODUCTION

In the age of digitalization, business information plays the most significant role for information specialists in the entire world. Information specialists are looking for new revolutionary tools, tools that can load specific information directly into information systems using the World-Wide-Web. One such tool is XBRL, which is an XML-based technology for the creation, preparation, exchange and publication of financial information (Graning et al., 2011). The use of a standardized tool, such as XBRL, would help companies to display data across all software applications, due to its compatibility with other software, without the need of retyping any parts of it (Blanas et al., 2011). XBRL has the potential to help organizations and agencies to improve their internal and external financial data flows and, most significant, to improve the communication between companies. XBRL has been stressed in the literature, as an innovation promising to change the way financial information is produced and consumed (Doolin and Troshani, 2007).

According to Locke and Lowe (2007) the success of projects such as XBRL is being measured by the spread of adoption in many countries and identifies the most important factors that influence its acceptance. Previous studies that investigate the adoption of XBRL in different countries indicate that XBRL adoption has a positive impact on professional and non-professional financial users (Hodge et al., 2004; Pinsker, 2008). Therefore, in order to decide whether XBRL is a successful technological innovation we have to examine the degree of its acceptance and usage. Since, XBRL is a new technology at an early stage, there are limited studies surrounding its adoption or usage by firms worldwide. Previous studies tried to examine contexts related to either the adoption or usage of XBRL without providing a thorough comprehension of the two important components of XBRL technology: acceptance and usage. For that reason, this study attempts to measure the infiltration of XBRL in Europe and the factors that influence its acceptance and usage.

System acceptance can be considered as the way people evaluate and use the technology (Hossain and De Silva, 2009). Therefore, system acceptance and usage is increasingly viewed as an important component for the examination of Information System (IS) success. One of the most well-known models used in the context of IS for the study of a new technology and its acceptance, is Technology Acceptance Model (TAM). Hence, this study examines XBRL acceptance and usage by proposing a model based on TAM2, which is an extension of TAM. …

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