Enterprise resource planning (ERP) systems are indispensable for a majority of larger and midsize firms, and have changed the way accounting information is collected, stored, processed, and disseminated. Although most ERP systems integrate an eXtensible Business Reporting Language (XBRL) component in their core modules, little research has examined how ERP systems affect the quality of XBRL filings. Using unique data from branch-level ERP implementation, we find that the degree of ERP adoption among a firm’s branches is negatively associated with the firm’s XBRL filing errors and positively associated with XBRL reporting comparability, which in turn facilitates external users’ access to the firm’s XBRL filings in the SEC’s EDGAR. These results suggest that ERP systems improve XBRL reporting quality. Moreover, our results indicate that ERP can mitigate the negative effect of extension taxonomies on XBRL reporting quality, which highlights the importance of the ERP system in a complicated XBRL reporting environment.
Skip Nav Destination
Close
Article navigation
Research Article|
February 03 2021
Enterprise Resource Planning Systems and XBRL Reporting Quality
Patrick Wheeler
;
Patrick Wheeler
Florida Gulf Coast University
Professor and Chair
10501 FGCU Blvd. South
UNITED STATES
Ft. Myers
FL
33965
2395901400
Search for other works by this author on:
Yiyang Zhang
Yiyang Zhang
Youngstown State University
Search for other works by this author on:
Journal of Information Systems (2021)
Article history
Received:
February 27 2020
Revision Received:
July 02 2020
Revision Received:
December 07 2020
Revision Received:
January 29 2021
Accepted:
February 02 2021
Citation
Feng Guo, Xin Luo, Patrick Wheeler, Liu Yang, Xinlei Zhao, Yiyang Zhang; Enterprise Resource Planning Systems and XBRL Reporting Quality. Journal of Information Systems 2021; doi: https://doi.org/10.2308/ISYS-2020-007
Download citation file:
Close
Sign in
Don't already have an account? Register
Client Account
You could not be signed in. Please check your email address / username and password and try again.
Sign in via your Institution
Sign in via your Institution
17
Views
0
Citations