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g have positive impact on capital markets. Investors in capital market can increase their ability to acquire and integrate the financial information by using the XBRL format reporting. (Hodge et al, 2004) Based on the comparability of XBRL based information, investors are expected to detect abnormal value in reported information. The abnormality can be found by comparing the each company's performance in different periods or by comparing with industry benchmark.

In earnings management literature, management's accounting choice and their decision is important factor with consideration on their incentive for the earnings management decision. Zhang 2006 found that managers consider accruals management and real manipulation interchangeable. They treat the accruals management and real manipulation as substitutes and choose one of them based on situations they face. Also, Cohen and Zarowin (2010) reported that, because of auditor's and regulator's scrutiny, along with past earnings management activities, managers have more propensities to use real management. Gunny (2005) found that companies engage in real earnings management by implementing following activities: (1) shortsightedly investing in Research and Development (R&D) to increase income (2) shortsightedly investing in selling, general and administrative (SG&A) to increase income (3) timing of earnings recognition from the disposal of long-standing assets and investments (4) cutting prices to increase sales in the current period and/or overproducing to decrease COGS expense. These activities are not easily found from the analysis of financial statement, and this is the important incentive to management choose real earnings management rather than accruals management.

However, investors, who use the XBRL formatted financial reports and analyze firm's information, may find those earnings management activities. Also, as Hodge et al (2004) pointed out, the recognition of management's accounting choices to disguise investors raise information user's concern about the financial reporting reliability of the firm. In this environment, management's incentives to conduct real earnings management activities will be decreased. So the hypothesis for the research is that H1. The adoption of XBRL formatted financial statement has negative association with real earnings management activities. Regarding this hypothesis, several related researches will be conducted.A research about changes in manager's earnings management decisions based on the XBRL reporting, in experimental setting By using archival data, the relation of XBRL reporting and the real earnings management occurrences can be investigated.

结论——Conclusion

Based on the research about the mechanism of XBRL reporting and the realized benefits of XBRL reporting, it is evident that the adoption of XBRL positively influenced on capital markets. Specifically, the XBRL format financial reports increased the investor's ability to evaluate the financial information and apply to their investment decision. Also, researches show that the adoption of XBRL reporting has negative relation with information asymmetry and convey incremental information to capital markets.

Researches about assurance on XBRL instance document raised important issues. It is important to treat the assurance on XBRL instance reporting based on the data-le本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。