Abstract: In this study, we examine the role of processing costs on a manager’s voluntary disclosure choice. We exploit the amendment to XBRL requiring Inline eXtensible Business Reporting Language (iXBRL) technology that enhanced the machine readability of financial statements. A primary goal of the amendment was to enable users to more efficiently view, access, and explore this information almost immediately. We predict and find that reduced processing costs decrease the benefits of voluntary disclosure, resulting in managers reducing from prior voluntary disclosure levels. We confirm the proposed channel, finding that price efficiency improves after the reduction in processing costs. Results are more pronounced for firms with better pre-period financial performance and less pre-period uncertainty. We add to a nascent literature on the role of processing costs in firm disclosure and inform regulators concerned with the intersection of corporate disclosures and advances in technology, highlighting a potential unintended consequence of improved machine readability

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