Abstract

XBRL is a financial reporting language, which is based on XML. Since 2003 we have tried to use financial reporting based on XBRL for listed company disclosure in China. This study mainly stands on the perspective of small investors, using empirical research methods to investigate whether XBRL reduced the level of information asymmetry in China’s capital market or not and further explaining XBRL promotes the rational allocation of resources in China's capital market and provided a guarantee for China's capital market having a rapid and stable development. This study generalizes the significance of the application of XBRL in China capital market, while its challenges have also been summarized. The main significance of this study is finding more “deminders” for the universal application of XBRL in China.

Keywords:

Accounting information, capital markets, information asymmetry, small investors, XBRL,

References

Competing interests

The authors have no competing interests.

Open Access Policy

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Copyright

The authors have no competing interests.