The Incidence of XBRL Voluntary Disclosure on the Value Relevance of Earnings: The Role of Corporate Governance. Cahier de recherche 2016-09. Chaire d'information financière et organisationnelle ESG UQAM

Denis Cormier (1) , Dominique Dufour (2) , Philippe Luu (2) , Pierre Teller (2) , Robert Teller (2)

1 ESG - Ecole des Sciences de la Gestion
2 GRM - Groupe de Recherche en Management - EA 4711

The aim of this paper is to investigate how voluntary disclosures in XBRL files affect the value relevance of GAAP earnings considering the quality of corporate governance. Results are the following. Good corporate governance is positively associated with voluntary XBRL extensions. We observe that XBRL extensions enhance the positive relationship between earnings and stock price. However, this positive association is reduced for firms with a good governance, suggesting a substitution effect between XBRL extensions and corporate governance. This research highlights the importance to consider corporate governance when assessing the relevance of XBRL disclosures for stock market participants. It also appears that XBRL extensions would strategically be related to earnings quality. Finally, findings show that XBRL extensions attract financial analysts.

Mots clés: Governance; Value relevance; XBRL

Domaines: Gestion et management

Denis Cormier, Dominique Dufour, Philippe Luu, Pierre Teller, Robert Teller. The Incidence of XBRL Voluntary Disclosure on the Value Relevance of Earnings: The Role of Corporate Governance. Cahier de recherche 2016-09. Chaire d'information financière et organisationnelle ESG UQAM. 2016. ⟨hal-01544949⟩