In 2015, Indonesia began to implementing XBRL for the financial reporting format. Based on Technology Organization Environment (TOE) model and signalling theory, this study examines the factors that determine early adopters in the early phase (2015 and 2016) of XBRL in Indonesia. Furthermore, this study examines the benefits of applying XBRL to the value relevance of earnings. The sample of this study is 360 firms listed on the Indonesia Stock Exchange. We find that in the early phase there were 298 firms using XBRL from the total sample and by 2016 it had decreased to 133 firms. By using logistic regression we find that firms size and profitability are firms financial characteristics that the determines of XBRL early adopters. Then, the composition of financial reporting expert is the board team factor of caharacteristics that the determines of XBRL early adopters. We also find that there is no effect of XBRL adoption in value relevance of earnings.

Type of Paper: Empirical Research

Keywords: XBRL adoption; determinants; value relevance; firm characteristics; board characteristics