The Influence of Digital Financial Reporting on Transparency Quality: A Signaling Theory Approach
DOI:
https://doi.org/10.51903/yaf6m538Keywords:
Digital Financial Reporting, Transparency Quality, Signaling Theory, XBRL, Investor TrustAbstract
The digital transformation has changed the entire view of financial reporting, and, in turn, it has made XBRL-based systems faster, more accurate, and more interactive. On the other hand, digitalization was not an option for all firms in terms of the transparency of substantive information. The research presented here focuses on the impact of digital financial reporting on the transparency quality of publicly listed companies in Indonesia, through the lens of signaling theory, which views digitalization as a signal of management’s credibility and commitment to openness. To carry out the study, a quantitative explanatory approach is adopted, and secondary data comprising 120 IDX-listed companies from the 2022–2024 period is used, which is subjected to Partial Least Squares-Structural Equation Modeling (PLS-SEM) analysis. The study demonstrates that digital financial reporting has a strong and significant influence on transparency quality (β = 0.524; p < 0.001), with an R² of 0.456. Accessibility is the most influential factor in increasing transparency, followed by interactivity, standardization, and timeliness. The above-mentioned events make it clear that both access and interactivity are major factors in the public's acceptance and reliance on digital financial reports. The foremost advantage of the current research is the combination of new concepts in digital financial reporting and signaling theory in the context of an emerging market, which provides empirical evidence that digitalization serves as an honesty signal that strengthens corporate reputation, credibility, and governance quality.
References
Abdalla Alassuli et al. (2025). The Impact of Accounting Digital Transformation on Financial Transparency: Mediating Role of Good Governance. Journal of Risk and Financial Management, 18(5), 1–18. https://doi.org/10.3390/jrfm18050272
Abin, M., Taufik, M., & Zaenuddin, A. (2025). The Role of Digital Financial Intelligence in the Economic Resilience of MSME Actors Post-Crisis. Jurnal Ilmiah Manajemen, Ekonomi Dan Bisnis, 4(2), 88–102. https://doi.org/10.51903/s7wfhv13
Agostino, D., Saliterer, I., & Steccolini, I. (2022). Digitalization, Accounting and Accountability: A Literature Review and Reflections on Future Research in Public Services. Financial Accountability and Management, 38(2), 152–176. https://doi.org/10.1111/faam.12301
Al-Okaily, M., Alkayed, H., & Al-Okaily, A. (2024). Does XBRL Adoption Increase Financial Information Transparency in Digital Disclosure Environment? Insights from Emerging Markets. International Journal of Information Management Data Insights, 4(1), 100228. https://doi.org/10.1016/j.jjimei.2024.100228
Albu, O. B., & Thøger Christensen, L. (2024). Shadows in the Spotlight: Navigating Organizational Transparency in Digital Contexts. Schmalenbach Journal of Business Research, 76(4), 641–659. https://doi.org/10.1007/s41471-024-00190-6
Alghazzawi, R. (2025). The Mediating Role of Regulations in the Effectiveness of XBRL in Emerging Markets: the Case of Jordan. Discover Sustainability, 6(1), 6. https://doi.org/10.1007/s43621-025-00800-1
Alkayed et al. (2023). The Role of XBRL Adoption on Enhancing Transparency of Information Disclosure: A Case Study of Jordanian Financial Companies. Cogent Business and Management, 10(3), 2265082s. https://doi.org/10.1080/23311975.2023.2265082
Ayu Miranti Kusumaningrum et al. (2025). Transparansi Keuangan UMKM melalui Otomatisasi Akuntansi Digital Berbasis Cloud. Kompak: Jurnal Ilmiah Komputerisasi Akuntansi, 18(1), 423–433. https://doi.org/10.51903/kompak.v18i1.2888
Biehl, H., Bleibtreu, C., & Stefani, U. (2024). The Real Effects of Financial Reporting: Evidence and Suggestions for Future Research. Journal of International Accounting, Auditing and Taxation, 54, 100594. https://doi.org/10.1016/j.intaccaudtax.2023.100594
Carolin A. Ernst et al. (2025). Investors’ Reactions to CSR Reputation and Disclosure Assurance: An Experimental Analysis. In Journal of Management and Governance, 1-44. https://doi.org/10.1007/s10997-024-09734-8
Cinta Borrero-Dominguez et al. (2024). Digital Transformation Voluntary Disclosure: Insights from Leading European Companies. International Journal of Accounting Information Systems, 55, 100711. https://doi.org/10.1016/j.accinf.2024.100711
Djuanda, M., & Hamdani, R. (2023). Penerapan Aplikasi Laporan Keuangan di Kementerian Indonesia: Rekonsiliasi Single Database Sakti. Kompak: Jurnal Ilmiah Komputerisasi Akuntansi, 16(1), 52–60. https://doi.org/10.51903/kompak.v16i1.1041
Elizabeth Blankespoor et al. (2022). Real-Time Revenue and Firm Disclosure. Review of Accounting Studies, 27(3), 1079–1116. https://doi.org/10.1007/s11142-022-09703-2
Georg Reischauer et al. (2024). Transparency in an Age of Digitalization and Responsibility. Schmalenbach Journal of Business Research, 76(4), 483–494. https://doi.org/10.1007/s41471-024-00203-4
IFRS. (2024). Digital Financial Reporting: Facilitating Digital Comparability and Analysis of Financial Reports. https://www.ifrs.org/digital-financial-reporting
Kou, G., & Lu, Y. (2025). FinTech: A Literature Review of Emerging Financial Technologies and Applications. Financial Innovation, 11(1), 1–34. https://doi.org/10.1186/s40854-024-00668-6
Lou, Z., Li, M., Shan, Y. G., & Ye, A. (2024). Does Corporate Digitalisation Moderate Real Earnings Management? Accounting and Finance, 64(4), 4157–4196. https://doi.org/10.1111/acfi.13301
Mbonigaba Celestin et al. (2025). Real-Time Financial Reporting in the Digital Age: How Companies Are Adapting to the Growing Demand for Instantaneous Financial Insights. Zenodo, 96–117. https://doi.org/10.5281/zenodo.15366124
Nguyen, Q., Kim, M. H., & Ali, S. (2024). Corporate Governance and Earnings Management: Evidence from Vietnamese Listed Firms. International Review of Economics and Finance, 89, 775–801. https://doi.org/10.1016/j.iref.2023.07.084
OECD. (2024). OECD Economic Surveys: Indonesia 2021. Bulletin of Indonesian Economic Studies, 57(3), 376 377. https://doi.org/10.1080/00074918.2021.1992831
OJK. (2022). Peraturan Otoritas Jasa Keuangan Republik Indonesia Nomor 14/POJK.04/2022 tentang penyampaian laporan keuangan berkala emiten atau perusahaan publik. Jakarta: Otoritas Jasa Keuangan. https://peraturan.bpk.go.id/Home/Details/227389/peraturan-ojk-no-14pojk042022-tahun-2022
OJK. (2023). Laporan Tahunan OJK 2023: Penguatan Sektor Jasa Keuangan dalam Menjaga Pertumbuhan Ekonomi. Otoritas Jasa Keuangan. https://ojk.go.id/id/data-dan-statistik/laporan-tahunan/pages/laporan-tahunan-ojk-2023.aspx
Park et al. (2013). The Effect of Fair Disclosure Regulation on Timeliness and Informativeness of Earnings Announcements. China Journal of Accounting Research, 6(1), 35–49. https://doi.org/10.1016/j.cjar.2012.12.001
Putra, E. M., Usdeldi, & Budianto, A. (2023). Pengaruh Ukuran Perusahaan dan Opini Audit terhadap Ketepatan Waktu Publikasi Pelaporan Keuangan (Studi pada Perusahaan Subsektor Makanan dan Minuman yang Terdaftar di Indeks Saham Syariah Indonesia (ISSI) Periode 2019–2021). Jurnal Ilmiah Manajemen, Ekonomi Dan Bisnis, 2(3), 8–34. https://doi.org/10.51903/jimeb.v2i3.668
Shatila, K., Martínez Climent, C., & Enri Peiró, S. (2025). The Mediating Roles of Corporate Reputation, Employee Engagement, and Innovation in the CSR—Performance Relationship: Insights from the Middle Eastern Banking Sector. Journal of Risk and Financial Management, 18(10), 534. https://doi.org/10.3390/jrfm18100534
Thuy Duong Oesterreich et al. (2024). What drives individuals’ trusting intention in digital platforms? An exploratory meta-analysis. Management Review Quarterly, 75(4), 3615-3667. https://doi.org/10.1007/s11301-024-00477-2
Urman, A., & Makhortykh, M. (2023). How Transparent are Transparency Reports? Comparative Analysis of Transparency Reporting Across Online Platforms. Telecommunications Policy, 47(3), 102477. https://doi.org/10.1016/j.telpol.2022.102477
Wardi, A., & Aninditiyah, G. (2024). The Impact of Regional Financial Accounting Systems, Public Transparency, and Control Activities on Financial Accountability in Local Governments. Journal of Management and Informatics, 3(1), 20–36. https://doi.org/10.51903/jmi.v3i1.43
Wei, C., & Zhang, L. (2023). Trust in Financial Markets: Evidence from Reactions to Earnings News. Management Science, 69(10), 6393–6415. https://doi.org/10.1287/mnsc.2022.4569
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Alya Nur Pradipta, Rizky Anwar Putra
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
.png)
