| Summary: | 碩士 === 國立成功大學 === 會計學系碩博士班 === 100 === This study explores the relation between XBRL and cost of capital. I examine whether voluntary filers of financial information in XBRL format have lower cost of debt and cost of equity relative to their non-adopting peers. The samples collected from the SEC website, because SEC declares companies voluntarily using XBRL filers from 2005 to 2008. I also examine whether mandatory adoption of XBRL cause the reduction of cost of capital, using Fortune 500 enterprise as the samples. U.S. publicly-held companies are mandated to file in XBRL format since 2009.
The results of this study show that companies voluntarily using XBRL have lower cost of debt and cost of equity. Additionally, cost of equity significantly reduces after mandatory adoption of XBRL, but mandatory adoption of XBRL doesn’t decrease cost of debt. The possible reason maybe that the credit rating agency lowers overall credit rating, thus affect the effectiveness of adopting XBRL.
|
|---|
