This paper examines the impact of XBRL reporting required by the U.S. Securities and Exchange Commission (SEC) on market efficiency. Based on the disclosure theories about imperfect markets, we hypothesize that XBRL reporting facilitates the generation and infusion of idiosyncratic information into the market and thus improves market efficiency. Our findings show a synchronous increase of information asymmetry and trading volume as posited in the disclosure theory and our hypotheses.

You do not currently have access to this content.