Critical Factors of XBRL Adoption in Nigeria: a Case for Semantic Model-Based Digital Financial Reporting

Abstract

The application of Technology Acceptance Model 2 (TAM 2) has reached remarkable heights in theory and practice. However its application to recent development in corporate reporting has been limited especially in emerging economies. To address this gap, we extend the theory to eXtensible Business Reporting Language (XBRL) adoption in Nigeria from the view of external auditors in the Big Four accountancy firms. XBRL usage, its perceived usefulness, and perceived ease of use were tested with subjective norm, image, job relevance, results demonstrability, and output quality. Through the path analysis among these TAM 2 variables, the results indicated that path magnitudes were significantly altered by XBRL model acceptance. The view of respondents reflects positive effect of perceived usefulness on intention to adopt XBRL. There is strong effect of perceived ease of use on perceived usefulness. Output of data analysis also indicate positive effect of results demonstrability on perceived usefulness while output quality influences perceived usefulness as job relevance also impacts on perceived usefulness. This might suggest that if the use of XBRL delivers improved data accuracy and information transparency it is expected that users would perceive the technology as valuable. The study is the first of its kind in Nigeria to observe determinants of XBRL acceptance with regards to professional accountants in the Big Four Audit firms.