Starting in 2009 the eXtensible Business Reporting Language (XBRL) standard was mandated for financial statements by the SEC. The XBRL standard was intended to encourage less-sophisticated trader disclosure processing; however, previous literature has conjectured that the standard primarily aided more-sophisticated traders' disclosure processing. I reexamine the effect of XBRL on more- and less-sophisticated trader disclosure processing by testing whether XBRL influenced their information acquisition and testing whether the proportional relationship between information acquisition and market activity is different for more- and less-sophisticated traders. I find the staggered implementation of XBRL is associated with a 49% (26%) increase in less (more) sophisticated trader information acquisition. Next, I find the proportional relationship between information acquisition and market activity is greater for less-sophisticated traders when compared to more-sophisticated traders. Specifically, I find information acquisition for less-sophisticated traders has a greater proportional relationship with abnormal price movement, abnormal trading volume, and abnormal bid-ask spreads. Together these findings suggest that XBRL did not provide a disproportionate information advantage to more-sophisticated traders, but rather benefited less-sophisticated traders by decreasing their information acquisition costs.
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