Abstract
XBRL is a financial reporting language, which is based on XML. Since 2003 we have tried to use financial reporting based on XBRL for listed company disclosure in China. This study mainly stands on the perspective of small investors, using empirical research methods to investigate whether XBRL reduced the level of information asymmetry in China's capital market or not and further explaining XBRL promotes the rational allocation of resources in China's capital market and provided a guarantee for China's capital market having a rapid and stable development. This study generalizes the significance of the application of XBRL in China capital market, while its challenges have also been summarized. The main significance of this study is finding more deminders for the universal application of XBRL in China.
Highlights
IntroductionXBRL (extensible Business Reporting Language) is based on XML (Extensible Markup Language) for financial reporting
XBRL is based on XML (Extensible Markup Language) for financial reporting
This study mainly studies the application of XBRL in China whether reduces the level of information asymmetry in Chinese Capital Market, which further explains that the application of XBRL provides a strong protection for rapid and stable development of china’s capital market Abbreviations and Acronyms
Summary
XBRL (extensible Business Reporting Language) is based on XML (Extensible Markup Language) for financial reporting. Before the birth of the XBRL, the network of financial reporting primarily uses two ways -HTML and PDF to express information. The above-mentioned 2 ways of financial reporting based on the network from all aspects of financial reporting have no essential differences with the reporting based on the study. At this point, users of financial reporting information only just remain in the view of existing data on the information, if they want to further analyze and compare information, needing further manual input, which will increase the error probability of information and information processing. The emergence of XBRL solves the above mentioned problems and XBRL can exchange data between the various systems (Baldwin et al, 2006; Autore and Kovacs, 2010; Farewell and Pinsker, 2005; Hodge et al, 2004; Premuroso and Bhattacharya, 2008; Teixeira, 2005; Farewell, 2006)
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