From traditional to digital: the role of XBRL adoption in improving financial statements transparency

Abstract

Purpose This study aims to explore the role of eXtensible Business Reporting Language (XBRL) adoption in improving financial statements transparency in the Jordanian context. Design/methodology/approach The partial least squares structural equation modeling approach was used to analyze the obtained data. Findings The empirical outcomes indicated that the adoption of XBRL contributes to improving financial statements transparency in listed Jordanian firms in the Amman Stock Exchange, whereas information technology (IT) infrastructure was found to moderate the relationship between XBRL adoption and improving financial statements transparency and hence the related hypotheses were accepted. Originality/value This study encouraged the importance of shifting to the adoption of the XBRL which will contribute to improving transparency of financial data and information in listed Jordanian firms and then support the process of decision-making.