XBRL technology adoption and consequences: A synthesis of theories and suggestions of future research

Research Question: This study is an appraisal of XBRL existing literature to find out what exists and what is lacking in the literature regarding the incentives of XBRL adoption, and its consequences. Motivation: The literature has not fully investigated the incentives of XBRL adoption and its consequences for the users of financial statements. The aim of this study is to synthesize current literature on XBRL adoption and its consequences. Idea: eXtensible Business Reporting Language (XBRL) is revolutionizing financial reporting on a global scale. It has the support of the world's most powerful institutions, including stock exchanges, central banks, standard setters, regulators, and other industry interests. It has attracted the attention of accounting researchers to better understand its influences on accounting and auditing professionals. Methodology: The current study uses qualitative research methods that includes a review and a synthesis of a variety of archival materials. Papers on XBRL are summarized under two main categories: incentives of XBRL adoption, and its consequences. Findings: The review suggests that the majority of publications are published in the second decade during 2011-2021 period. This result may imply that researchers try to give more answers for regulators, policy makers and standard-setters about issues related to the concrete implementation of XBRL in different contexts and countries. In addition, the current review notices that most of the previous studies that focus on the determinants of XBRL adoption are exploratory and use the qualitative method through surveys and/or interviews. While these studies extend our knowledge about the motivations that push towards the XBRL adoption, future studies could confirm these results with more objective measures. The current study notices that most prior studies focus on a single country, hence future research may use comparative analysis of XBRL adoption in different countries as it may offer a better understanding of the actual use of XBRL in diverse contexts. Further studies should consider emerging countries, and more particularly GCC countries, where XBRL technology adoption is mandatory and take into account the socio-economic culture of these countries. As a future direction, there is a need of investigation on the role of regulation in improving the use of XBRL and the extent of compliance with XBRL IFRS taxonomy. Future studies may also investigate the potential consequences of XBRL technology on financial reporting quality to give answers for standard-setters and policy makers. Contribution: Our research contributes to the existing literature by creating a foundational knowledge base that will be relevant to different stakeholders including, governments, practitioners, and researchers on the effects of implementing XBRL, as well as the relevance of such theories in explaining XBRL adoption

Impact of XBRL adoption on financial reporting quality: a global evidence

Purpose: In this paper, we examine the effect of XBRL adoption on financial reporting quality at the country-level (developing and developed countries). Design/methodology: We use data from 98 developed and developing countries between 2005-2018. We collected data from various sources such as the World Economic Forum, World Development Indicators, World Governance Indicators and XBRL website. Finding: Our results show that XBRL is associated with an increased financial reporting quality. However, the relationship is stronger in developing countries than in developed countries. We also find that the results remain the same after accounting for years of XBRL experience and the effect of accounting globalisation. The results are consistent with the assumption that XBRL formatted financial statements improve information efficiency through increased searching efficiency, quality of display, and comparability. Our results are robust to alternative econometric modifications such as controlling for country, year effects and endogeneity. Implications: Our results can potentially assist the XBRL promoters and regulators in expeditiously assessing the benefits of XBRL and advocating its adoption by many countries. Our findings offer more motivations for regulators around the world to mandate this new filing standard format. Originality: This study contributes to the literature by providing empirical evidence on the consequences of XBRL at the country-level. The present study provides evidence on an important question of whether the XBRL, new information technology in the accounting field, can play a useful role in improving financial reporting

Business environmental innovation and CO₂ emissions:the moderating role of environmental governance

This paper examines the effects of environmental innovation on CO2 emissions as well as the moderating role of environmental governance in this relationship. Based on a sample of companies listed on the London Stock Exchange for the period from 2016 to 2020, the findings show that environmental innovation reduces CO2 emissions including Scope 1 and Scope 2 CO2 emissions. Likewise, our findings are associative of a moderating effect of environmental governance on the environmental innovation-CO2 emissions nexus. We argue that environmental innovation along with better environmental governance leads to a reduction in CO2 emissions. Our results hold for subsamples of firms with a strong/low environmental governance and ESG performance. Our findings offer important implications for companies and policymakers towards adopting more environmental technologies along with enhancing environmental governance to reduce CO2 emissions

How artificial intelligence changes the future of accounting industry

Purpose: The main theme of the study relates to the assessment of the impact of artificial intelligence on accounting professionals, especially the upcoming generation of an accountant. The study aims to assess the effects of the introduction of AI-based systems in the field of accounting and answer the question of how it has changed the world of accounting professionals and to forward relevant suggestions to policymakers. Design/Approach/Methodology: The study consists of the results of qualitative document analysis on the topic of artificial intelligence in the accounting industry. Findings: The research concludes that the serious concerns amongst the practicing accountant in the present-day world can be replaced by an Artificial Intelligence-based automated system. To avoid this fate, the accountants need not only to adapt to the use of information technology but also need to adapt to the ever-changing business environment. Practical Implication: It has been recommended that to enhance the performance and effectiveness of accounting functions the accountants and accounting firms should keep abreast of continuous improvements in artificial intelligence in their field, which will eventually lead to a reduction in accounting costs to the firm along with adding value to the accounting industry by shifting the focus of accountants to data-driven and analytics-based decision from existing monotonous tasks. Originality/Value: The study is original and it adds to scholarly debate on how the technology revolution changes the future of the accounting industry.peer-reviewe

What is the role of artificial intelligence in shaping accounting information systems? A literature review

  Artificial intelligence (AI) applied to accounting and auditing represents a matter that is getting the attention of researchers. This paper provides an understanding of the evolution of AI and its role in shaping accounting information systems (AISs). It aims to summarize the current state of the literature that deals with the impact of AI on AIS, highlighting related aspects, such as the benefits and challenges of AI in AIS research. This review suggests that current studies dealing with this matter are scarce and invites future research to examine how bias and transparency are handled in the context of AI auditing systems and whether human auditors will fully rely on AI outcomes

Environmental Change and Inclusive Finance: Does Governance Quality Matter for African Countries?

This paper examines the effect of environmental change on inclusive finance in African countries during the period 1996–2020. It also investigates the moderating role of government quality on the association between environmental change and inclusive finance. We collected five-year average data from various sources such as the World Development Indicators, the World Governance Indicators, and the International Monetary Fund. Government quality is measured by six dimensions: political stability, voice and accountability, government effectiveness, regulation quality, the rule of law, and corruption control. Environmental change is measured by CO2 emissions. Inclusive finance is measured by the financial development index through depth, access, and efficiency ratios. These variables represent the most used in prior studies as they are published by international organizations such as the World Bank and the International Monetary Fund, which represent a reputable source of timely information related to the business environment in which business executives operate in several countries. The results show a significant impact of environmental change on inclusive finance. Including economic governance induces a significant and positive effect on financial inclusion in all instances. Our results also show that the coefficients of the interaction between environmental change and governance dimensions are positive and significant. The moderator role of governance is improved when taking into account political, institutional, and economic governance. Our findings offer more motivation for regulators and governments to develop environmental policies that integrate inclusive finance to meet sustainable development goals. Our results are important as they can help regulators, investors, and policymakers to assess and better understand the potential moderation role of governance quality in the relationship between inclusive finance and environmental change

ESG disclosure in G7 countries: do board cultural diversity and structure policy matter?

The aim of this paper is to investigate the impact of board cultural diversity (BCDIV) and board structure policy (BSP) on environmental, social, and governance (ESG) disclosure. The sample of this study includes 2988 companies from G7 countries during the 2015–2022 period. Our empirical results reveal that boards with heterogeneous cultural directors and the existence of BSP improve overall ESG scores. Further analysis shows that BSP is a crucial determinant of the governance dimension, one of the pillars of ESG disclosures, whereas BCDIV affects the social dimension more. The findings of this paper offer policy insights, highlighting the importance of BCDIV and BSP for better ESG disclosure. Policymakers should therefore establish regulations that encourage BCDIV and BSP and promote ESG disclosure. Corporate governance reforms that aim to improve the effectiveness and efficiency of boards are critical in order for companies to attain both financial and sustainable development

Bacillus phytases: Current status and future prospects

Phytases catalyze the hydrolysis of phytic acid in a stepwise manner to lower inositol phosphates, myo-inositol (having important role in metabolism and signal transduction pathways), and inorganic phosphate. These enzymes have been widely used in animal feed in order to improve phosphorus nutrition and to decrease pollution in animal waste. Compared to previously described phytases, the phytase (PhyL) from Bacillus licheniformis ATCC 14580 has attractive biochemical properties which can increase the profitability of several biotechnological procedures (animal nutrition, human health…etc). Due to its amino acid sequence with critical substitutions, the PhyL could be a model to enhance other phytases features, in terms of thermal stability and high activity. Otherwise, an engineered PhyL, with low pH optimum, will represent a challenge within the class of β- propeller phytases