The effect of XBRL adoption on information symmetry in companies’ financial reports through knowledge management: Perceptions of employees of the jordan securities commission

Abstract

The aim of this study is to investigate the impact of XBRL adoption on information symmetry in the presence of knowledge management as a mediating variable. Data were collected using a questionnaire distributed to all employees working at the Jordan Securities Commission (JSC). Applying the partial least squares method via SmartPLS-3, the results pointed out that the XBRL had significant positive direct effects on knowledge management and information symmetry, knowledge management had a significant positive direct effect on information symmetry. Hence, a partially mediating significant effect of knowledge management was detected between the XBRL and information symmetry. Accordingly, the study recommended governmental legislative bodies to continue supporting XBRL adoption to improve the quality of financial information. The study also recommends understanding the perceptions of preparers and users of financial statements about challenges that hinder the adoption of XBRL in various commercial sectors in order to improve the consistency of informational content in annual reports.