A Structural Model of the Determinants of XBRL Adoption

Posted: 23 Mar 2009

See all articles by David Lockhart Henderson

David Lockhart Henderson

University of Mary Washington

Steven D. Sheetz

Virginia Polytechnic Institute & State University - Department of Accounting and Information Systems

Brad S. Trinkle

Mississippi State University - School of Accountancy

Date Written: March 23, 2009

Abstract

Motivated by the purported benefits of XBRL, yet its slow adoption by organizations, the purpose of this study is to determine the significant factors leading to a firm's decision to adopt XBRL both internally and for external reporting purposes. While XBRL is becoming mandatory in the US for SEC filings, there is not a proposed mandate for the adoption of XBRL for internal purposes or for the conversion of financial information into XBRL-tagging in-house (as opposed to outsourcing the conversion). The research model developed in this study combines research on information systems standards adoption and research on the adoption of complex information systems innovations to yield factors for adoption that are categorized as environmental (e.g., governmental and competitive pressure), organizational (e.g., management support and an XBRL champion), and technological (e.g., compatibility, and instability). The determination of the significance of these factors will lead to an explanation for why adoption has been limited and suggest actions that regulators, audit firms, and investors can take to encourage the adoption of XBRL. Data will be gathered by surveying the appropriate decision maker for XBRL at organizations that have indicated an interest in adopting XBRL.

Keywords: XBRL, IT Adoption

JEL Classification: M40, M41

Suggested Citation

Henderson, David Lockhart and Sheetz, Steven D. and Trinkle, Brad S., A Structural Model of the Determinants of XBRL Adoption (March 23, 2009). Available at SSRN: https://ssrn.com/abstract=1367232

David Lockhart Henderson (Contact Author)

University of Mary Washington ( email )

1301 College Avenue
Fredericksburg, VA 22401
United States

Steven D. Sheetz

Virginia Polytechnic Institute & State University - Department of Accounting and Information Systems ( email )

Pamplin College of Business
Blacksburg, VA 24061
United States

Brad S. Trinkle

Mississippi State University - School of Accountancy ( email )

Mississippi State, MS 39762
United States

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