Enterprise Resource Planning Systems and XBRL Reporting Quality

What is it about?

Enterprise resource planning (ERP) systems are becoming inseparable for the majority of larger and midsized firms throughout the world and have radically changed the way accounting information is collected, stored, and disseminated. The SEC now requires that financial statements use eXtensible Business Reporting Language (XBRL) software when filing. Although most ERP systems integrate an XBRL component into their business information systems, there has been little research that examines how ERP systems affect the quality of XBRL filings. In this paper, we examine empirically this relationship.

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