Investigation on XBRL Adoption Based on TOE Model

Abstract

One current new technology in financial issues is XBRL (eXtensible Business Reporting Language) that is based on XML (eXtensible Markup Language). Actually, XBRL is a language to transfer data and a new way to publish financial reports on the internet. This is important for organizations which want to communicate internationally with other organizations in the world. Meanwhile, all shareholders, stakeholders, competitors and public users want to know more about an organization for any usage, XBRL can make easy the knowledge discovery procedure in this issue which makes it vital for nowadays firms to compete in the world business era. Aim: The purpose of this paper is to define a model for facilitating XBRL adoption within firms which van be developed through exploring the affecting factors on XBRL adoption. Methodology: This paper tries to investigate affecting factors on XBRL based on TOE model including environmental, organizational and technological factors. Confirmatory factor analysis will be employed to test the TOE model on XBRL adoption according to experts' opinion. Results: Through investigating the effect of various factors based on TOE model on XBRL adoption, environmental factors with 0.95, technological factors with 0.90 and organizational factors with 0.85 respectively are the most important factors which affect XBRL successful adoption. Conclusion: In order to implement a new technology such as XBRL, every organization should define and provide its prerequisites and success factors to reach a well adoption and preventing its relevant risks.