The effect of XBRL adoption on corporate tax avoidance: empirical evidence from an emerging country

Arfah Habib Saragih, Syaiful Ali

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)


Purpose: This paper aims to study the impact of the adoption of eXtensible Business Reporting Language (XBRL) on corporate tax avoidance. Design/methodology/approach: This paper used a quantitative method with panel data regression models using a sample of firms listed on the Indonesia Stock Exchange from 2011 to 2018. Findings: The regression results demonstrate that XBRL implementation does not have any impact on corporate tax avoidance. The results indicate that tax avoidance is not reduced following XBRL adoption. This report shows unexpected and unfavourable outcomes of XBRL financial reporting in a developing country. Research limitations/implications: This study employs a sample of firms from one emerging country only. Practical implications: The study proposes several implications for using XBRL in tax reporting, which may help the tax authorities reduce tax avoidance. Regulators need to develop adequate taxonomies with standardized extensions related to tax information in the XBRL format. They include tax tags from financial statements and tax tags from the disclosure section, to gain more comprehensive corporate tax information. Originality/value: This study proposes and tests an explanation for the effect of XBRL adoption on corporate tax avoidance in the context of a developing country.

Original languageEnglish
JournalJournal of Financial Reporting and Accounting
Publication statusPublished - 17 Mar 2022


  • Book–tax differences
  • Emerging country
  • Tax avoidance
  • XBRL


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