DETERMINANTS OF INTERNET FINANCIAL REPORTING AND DISCLOSURE OF LISTED FIRMS IN TANZANIA: THE CASE OF DAR ES SALAAM STOCK EXCHANGE

Abstract

This paper aims to examine the potential drivers that may influence the level of corporate internet financial reporting and disclosure by listed firms in Tanzania. In total, 15 listed companies were analyzed in this study during the year 2015 to 2020. By using the panel multiple regression techniques, the paper has established the strength and direction of the effect of seven drivers on the internet financial reporting index namely: size, leverage profitability, liquidity, the board size, non-executive directors, and audit firm type. The findings of the study revealed that firm size, leverage, liquidity, board size, non-executive directors, and audit firm type were found to be positive and significant on IFR while profitability was found to be negative and significant on IFR. The study finding is important as it assists in informing regulators about the characteristics of Tanzanian firms that are, and are not, satisfying investors’ demand for updated/online financial information and build a mandatory framework for IFR instead of using it voluntarily because the internet is increasingly used by firms to disseminate financial information. It also assists current and potential stakeholders to know the factors that influence corporate internet financial reporting in Tanzania. In practice, online financial reporting can be used as an effective tool for improving investors’ decision-making process and investors use IFR to make important financial investment decisions