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The Effect Of Xbrl And Social Media On Information Asymmetry: Evidence From Bank Loan Contracts, Dazhi Chong
The Effect Of Xbrl And Social Media On Information Asymmetry: Evidence From Bank Loan Contracts, Dazhi Chong
Information Technology & Decision Sciences Theses & Dissertations
This study analyzes how two information technology advancements, the adoption of XBRL (eXtensible Business Reporting Language), and social media, affect bank loan contracting using a sample of 554 US bank loan contracts in 2011. I hypothesize that the adoption of XBRL and social media can enhance information dissemination and mitigate the information asymmetry problem between borrowers and lenders. Consistent with this hypothesize, I find that borrowers that adopt XBRL and/or receive positive social media user opinion in social media enjoy more favorable price and non-price terms of bank loan contracts. Additional analyses indicate that the relations among XBRL adoption, social …