An Analysis of the Impact of XBRL Filings Towards Information Asymmetry in Indonesia

This study aims to examine whether XBRL filings by Indonesian companies could reduce information asymmetry, measured by the bid-ask spread. Among others, XBRL filings is expected to result in higher accuracy, validity and transparency of data, cost efficiency, as well as lower information asymmetry in the capital market. A total of 6-year period, which consists of pre-XBRL period (2012-2014) and post-XBRL period (2016-2018) from 65 companies were observed. Control variables included in this study are firm size, stock price and trading volume. The data analysis method used in this study is multiple regression analysis. Contrary to the hypothesis proposed, the result of multiple regression analysis shows no evidence that XBRL adoption reduces information asymmetry in Indonesia. This could be due to the fact that Indonesia is still in early stage of XBRL reporting and considered as early adopters. It might take several years before stakeholders could benefit from XBRL filings in corporate financial reporting.