Does IT outsourcing affect the accuracy and speed of financial disclosures? Evidence from preparer-side XBRL filing decisions

Yu Cong, Ayishat Omar, Huey Lian Sun

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

In this paper, we examine the impact of preparer-side XBRL filing decisions on the accuracy and speed of financial disclosures. Specifically, we use the choice between in-house and outsourced preparation of XBRL filings to examine the impact of the decisions on financial disclosures. Using annual and quarterly SEC filings in XBRL format, we test the accuracy and speed of the filings by comparing the number of amendments and reporting delays of the filings that are prepared in-house relative to those prepared by a third party. Our results indicate that outsourcing XBRL filings increases reporting accuracy but does not affect speed. Additionally, several firm-specific characteristics, including the complexity of XBRL filings, have an impact on the accuracy and speed of XBRL filings.

Original languageAmerican English
Pages (from-to)45-61
Number of pages17
JournalJournal of Information Systems
Volume33
Issue number2
DOIs
StatePublished - Jun 2019

ASJC Scopus subject areas

  • Management Information Systems
  • Software
  • Information Systems
  • Accounting
  • Human-Computer Interaction
  • Information Systems and Management
  • Management of Technology and Innovation

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