Leveling the Playing Field between Large and Small Institutions: Evidence from the SEC's XBRL Mandate

• 成果类型: Article
• 署名作者: Bhattacharya, Nilabhra; Cho, Young Jun; Kim, Jae B.
• 署名单位: Southern Methodist University; Singapore Management University; Lehigh University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-52000
• 发表日期: 2018
• 页码: 51-71
• 关键词: EARNINGS ANNOUNCEMENTS; stock returns; investors; DISCLOSURES; complexity; FILINGS; trades

摘要

We investigate how XBRL adoption affects smaller institutions' access to financial statement information relative to their larger counterparts. We examine three aspects of trading responsiveness: abnormal trading volume, response speed to 10-K information, and decision to trade immediately following the 10-K filing. With regard to all three aspects of trading responsiveness, we find that small institutions' responsiveness to 10-K news increases significantly more relative to the change experienced by large institutions from the pre- to post-XBRL periods. We further document that small institutions' stock picking skills in the 10-K filing period increase more compared to those of large institutions following the regulation. Our results are robust to a battery of falsification and sensitivity tests. Collectively, our results suggest that the informational playing field between small and large institutions has become more even following the SEC's XBRL mandate.