Extended XBRL Taxonomies and Financial Analysts' Information

57 Pages Posted: 26 Feb 2016 Last revised: 3 Dec 2017

See all articles by Joe Johnston

Joe Johnston

Illinois State University - Department of Accounting

Date Written: November 17, 2017

Abstract

I investigate how the use of extended tags in eXtensible Business Reporting Language (XBRL) filings is associated with financial analysts' forecast error and dispersion. The SEC allows firms to provide customize tags in their XBRL filings which, on the one hand, may allow firms to customize financial statements to reflect firms specific disclosures. On the other hand, customized tag may inhibit information search and ultimately reduce the usefulness of XBRL data. Since the use of extended tags is related to the reporting environment of the firm, I employ an instrumental variables technique to control for endogeneity. I find extensions are robustly negatively related to analysts’ forecast error and dispersion after controlling for endogeneity. In additional analysis, I find that extensions in the footnote disclosures drive this negative relationship and that extensions in the financial statements are marginally positively associated forecast error and dispersion, controlling for extensions is the footnote disclosures. This study is relevant to regulators creating policies about XBRL extensions.

Keywords: XBRL, XBRL Extensions, Analysts' Information

JEL Classification: M41, G18, G28, G24

Suggested Citation

Johnston, Joseph Atkins, Extended XBRL Taxonomies and Financial Analysts' Information (November 17, 2017). Available at SSRN: https://ssrn.com/abstract=2737190 or http://dx.doi.org/10.2139/ssrn.2737190

Joseph Atkins Johnston (Contact Author)

Illinois State University - Department of Accounting ( email )

United States
309-438-3830 (Phone)

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