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eXtensible Business Reporting Language (XBRL) may vastly improve the transparency of firms’ financial information. Financial statements in XBRL format allow financial report users to directly search for relevant information regardless of the location of the information and to easily compare related information between different companies. As a consequence, management’s financial reporting choices and financial disclosure management practices are more explicitly presented to users.

INFORMATION TECHNOLOGY ADDRESSES TRANSPARENCY: THE POTENTIAL EFFECTS OF XBRL ON FINANCIAL DISCLOSURE