Digitalization of Financial Statement through XBRL Adoption on Timeliness of Financial Reporting with Audit Committee as Moderating Variable

Abstract

As the current financial reporting creates obstacles to company performance, so in order to improve the quality of financial reports requires a new approach with the help of technology, one of which is the use of Extensible Business Reporting Language (XBRL). This study aims to examine the effect of XBRL adoption on the timeliness of financial reporting using audit committee meetings as moderating variable. This study uses an explanatory quantitative approach using 77 Indonesian-listed manufacturing companies for the 2016-2021 period. This study used logistic regression using IBM SPSS Software Ver. 25 . The results showed XBRL adoption affects the timeliness of financial reporting, then audit committee meetings moderated the XBRL adoption and the timeliness of financial reporting. For the control variables, leverage and audit size had no effect on the timeliness of financial reporting. The results show that Indonesian-listed companies need to adopt XBRL for a better financial reporting process, leading to the timeliness of financial reporting.