Will XBRL improve corporate governance? : A framework for enhancing governance decision making using interactive data

In this paper we first develop a framework for understanding how tagged data can be used to change the way in which decisions affecting governance are made. Ultimately data, however it is formatted, is simply a means towards an end and it provides no value added unless different decisions are made as a result of its availability. We use Elliott's (1998) model of decision making and apply it to the governance area to serve as a framework for an investigation of precisely how XBRL will provide value added. We then analyze the current specifications of XBRL, both its taxonomies and the way in which tagged data is rendered, to answer the question of whether XBRL—as opposed to the generic concept of tagged data—takes full advantage of its potential to improve governance decision making.

Research Highlights
► XBRL has the potential to improve governance.
► That can only happen if XBRL impacts governance decision making.
► XBRL can be used to democratize data and make it user driven.
► XBRL enables data to be viewed from multiple perspectives which leads to new knowledge creation.