Affiliation:
1. Iowa State University
2. Marquette University
3. Florida Gulf Coast University
4. Southeast Missouri State University
5. The University of Toledo
6. Youngstown State University
Abstract
ABSTRACT
Enterprise resource planning (ERP) systems are indispensable for a majority of larger and midsize firms, and have changed the way accounting information is collected, stored, processed, and disseminated. Although most ERP systems integrate an eXtensible Business Reporting Language (XBRL) component in their core modules, little research has examined how ERP systems affect the quality of XBRL filings. Using unique data from branch-level ERP implementation, we find that the degree of ERP adoption among a firm's branches is negatively associated with the firm's XBRL filing errors and positively associated with XBRL reporting comparability, which in turn facilitates external users' access to the firm's XBRL filings in the SEC's EDGAR. These results suggest that ERP systems improve XBRL reporting quality. Moreover, our results indicate that ERP can mitigate the negative effect of extension taxonomies on XBRL reporting quality, which highlights the importance of the ERP system in a complicated XBRL reporting environment.
Publisher
American Accounting Association
Subject
Management of Technology and Innovation,Information Systems and Management,Human-Computer Interaction,Accounting,Information Systems,Software,Management Information Systems
Reference82 articles.
1. American Institute of Certified Public Accountants (AICPA).
2017.
AICPA professional resources.
Available at: https://www.aicpa.org/content/dam/aicpa/interestareas/frc/accountingfinancialreporting/xbrl/downloadabledocuments/aicpa-comment-letter-ixbrl-final.pdf
2. Amrhein,
D. G.,
Farewell
S.,
and
PinskerR.
2009.
REA and XBRL GL: Synergies for the 21st century business reporting system.
International Journal of Digital Accounting Research9 (
15):
127–
152.
https://doi.org/10.4192/1577-8517-v9_5
3. Bartley,
J.,
Chen
A. Y. S.,
and
TaylorE.
2010.
Avoiding common errors of XBRL implementation.
Journal of Accountancy209 (
2):
46–
51.
4. Bartley,
J.,
Chen
A. Y. S.,
and
TaylorE. Z.
2011.
A comparison of XBRL filings to corporate 10-Ks—Evidence from the voluntary filing program.
Accounting Horizons25 (
2):
227–
245.
https://doi.org/10.2308/acch-10028
5. Blankespoor,
E.
2019.
The impact of information processing costs on firm disclosure choice: Evidence from the XBRL mandate.
Journal of Accounting Research57 (
4):
919–
967.
https://doi.org/10.1111/1475-679X.12268
Cited by
2 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献