The Effect of XBRL Adoption on the Investors’ Trading Behavior in Indonesia Stock Exchange

DOI

10.2991/icame-18.2019.17How to use a DOI?

Keywords

XBRL (Extensible Business Reporting Language) adoption, Frequency of trading, Indonesia Stock Exchange

Abstract

This research aimed to examine the effect of XBRL (Extensible Business Reporting Language) adoption on investors’ trading behavior in Indonesia Stock Exchange which was reflected in the frequency of trading on Indonesia Stock Exchange. By using a number of 34 banking issuers taken randomly from a number of 81 banking issuers listed in the Indonesia Stock Exchange in 2014 and 2016, and using one way ANOVA analysis method, for t-test, to see the effect of pre and post XBRL adoption on trading shares frequencies, and also added control variables ROA, SIZE and dividend ratios to the effect of pre XBRL adoption. The results revealed that when post XBRL adoption, the stock trading frequency and control Variable ROA (Return on Assets) did not have any significant changes during the implementation of XBRL, this was due to the sample of financial report data taken from post XBRL, i.e., the 2016 financial data, while the implementation of XBRL only started in 2015, so the implementation of XBRL had not an effective effect on investors, but the other control variable, i.e., SIZE had significant changes during the post XBRL adoption, this implies the effectiveness of XBRL adoption, the increase in the investor’s turnover ratio in small companies is more pronounced and economically significant than the large companies. Small companies respond to the existence of XBRL, the response occurs because there is an additional convenience obtained to get more transparent and relevant information to the expected investment decision making. The DEVIDEN as control variable had any significant change during the post XBRL adoption, this indicates that the investors’ response to XBRL will increase the frequency of their trading and affect the possibility of obtaining greater dividends.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Linda Arisanty Razak
AU  - Grace T. Pontoh
AU  - Haliah
AU  - Muhammad Yamin
PY  - 2019/08
DA  - 2019/08
TI  - The Effect of XBRL Adoption on the Investors’ Trading Behavior in Indonesia Stock Exchange
BT  - Proceedings of the 3rd International Conference on Accounting, Management and Economics 2018 (ICAME 2018)
PB  - Atlantis Press
SP  - 156
EP  - 162
SN  - 2352-5428
UR  - https://doi.org/10.2991/icame-18.2019.17
DO  - 10.2991/icame-18.2019.17
ID  - Razak2019/08
ER  -