The Effects of Using XBRL Technology for Financial Report Submission on Earnings and Capital Cost Management of Shareholders

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Published: May 15, 2020
Keywords:
Extensible Business Reporting Language Technology Earnings Management Capital Cost

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Natha Thornjareankul
College of Innovation Management, Rajamangala University of Technology Rattanakosin
Korbkul Jantarakolica
College of Innovation Management, Rajamangala University of Technology Rattanakosin

Abstract

The objective of this study was to examine the effects of using XBRL technology for financial report submission on earnings and capital cost management of shareholders in the companies listed on the Stock Exchange of Thailand. The sample consisted of 215 companies using Annual Registration Statement (Form 56-1) for annual financial report submission during the years 1997-2017, with a total of 4,535 financial datasets of the same standards. Pre-and post measurements of using XBRL technology for earnings management were implemented based on 2 indicators including the size of discretionary accruals according to the Modified Jones Model and the capital cost of shareholders according to the Capital Asset Pricing Model (CAPM). The data were analyzed using a statistical software package comprising frequency distribution, mean, standard deviation, and multiple regression analysis according to the Tobit Model to answer the research hypotheses. The findings showed that same-standard financial report submission using XBRL technology had a significant effect on earnings management under the discretionary accruals due to information asymmetry among executives and shareholders. Besides, same-standard financial report submission using XBRL technology had a significant effect on capital cost of shareholders if the submission is performed consistently in the long run.

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How to Cite
Thornjareankul, N. ., & Jantarakolica , K. . (2020). The Effects of Using XBRL Technology for Financial Report Submission on Earnings and Capital Cost Management of Shareholders . JOURNAL OF SOUTHERN TECHNOLOGY, 13(1), 74–85. Retrieved from https://so04.tci-thaijo.org/index.php/journal_sct/article/view/187864
Issue
Vol. 13 No. 1 (2020): January-June 2020
Section
Research Manuscript

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