Firm-Specific Characteristics of the SEC's XBRL Voluntary Filing Program Participants

46 Pages Posted: 10 Sep 2014 Last revised: 9 Dec 2021

See all articles by J. Efrim Boritz

J. Efrim Boritz

University of Waterloo - School of Accounting and Finance

Lev Timoshenko

University of Calgary - Haskayne School of Business

Date Written: July 18, 2014

Abstract

A number of papers have attempted to study firm-specific characteristics of the participants in the SEC-administered XBRL Voluntary Filing Program (VFP). However, to date their findings have been conflicting, contrary to the underlying theory or inconclusive due to methodological limitations. Some of these limitations include the use of limited subsets of VFP data, the use of portfolio matching designs containing matching weaknesses, and omission of key explanatory variables. This paper attempts to overcome some of these limitations by using a more comprehensive sample, employing a more effective matching procedure and a more complete set of variables suggested by both voluntary disclosure and organization theories. Consistent with the theory, higher voluntary disclosure propensity, stronger corporate governance, and better profitability are found to be robustly significant factors associated with voluntary XBRL adoption in the U.S. Innovativeness is a distinguishing characteristic for non-hi-tech VFP participants. Analyst following, auditor quality and earnings quality are less robust characteristics.

Keywords: Voluntary disclosure, early adoption of innovations, XBRL, SEC voluntary filing program, Corporate disclosure technology

Suggested Citation

Boritz, Efrim and Timoshenko, Lev, Firm-Specific Characteristics of the SEC's XBRL Voluntary Filing Program Participants (July 18, 2014). Journal of Information Systems, Vol 29, No. 1 (Spring) 2015: 9-36, Available at SSRN: https://ssrn.com/abstract=2492908 or http://dx.doi.org/10.2139/ssrn.2492908

Efrim Boritz (Contact Author)

University of Waterloo - School of Accounting and Finance ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1 N2L 3G1
Canada
519-888-4567 (Phone)
519-888-7562 (Fax)

Lev Timoshenko

University of Calgary - Haskayne School of Business ( email )

2500 University Dr NW
Calgary, Alberta T2N 1N4
Canada

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