Effect of Internet Corporate Reporting on Financial Performance of Listed Manufacturing Firms in Nigeria

Abstract

The growth in the number of internet users and disclosed information has had a major impact on the performance of different legal and economic frameworks globally. This study aims to examine the relationship between online corporate reporting and financial performance of listed manufacturing firms in Nigeria during pre- and post-IFRS implementation. The population of research was comprised of all one hundred and two (102) publicly traded manufacturing companies in Nigeria as of December 2018. Secondary data were collected from the sample of thirty-one (31) publicly traded manufacturing companies for a period of 10 years, divided into 2009 to 2013 (pre-IFRS) and 2014 to 2018 (post-IFRS. The data collected were analysed using multiple regression analysis. The findings from the study show that online corporate reporting, and firm size positively affects firm value (FV), whereas firm age negatively affects firm value during pre-IFRS periods. The results also show that online corporate reporting and firm age inversely related to firm value, while firm size positively affects firm value (FV) after-IFRS adoption. The research outcome further reveal that negative relationship exists between internet corporate reporting, company size and earnings per share (EPS), meanwhile, firm age has positive influence with earnings per share (EPS) of listed manufacturing firms in Nigeria during pre-IFRS periods. It was discovered that for post-IFRS period, internet corporate reporting and leverage are positively significant with earnings per share (EPS), whereas company size and age do not. Furthermore, the study found that a negative relationship exists between internet corporate reporting and return on equity (ROE) for both pre-IFRS and post-IFRS period, while firm size has a positive relationship with return on equity (ROE) of listed manufacturing firms in Nigeria during pre-IFRS periods only. The regression results also reveal that return on equity (ROE) is negatively affected by leverage during post-IFRS periods. The study recommends that management of Nigerian quoted manufacturing companies should continue using internet as a platform in disseminating company financial information to the stakeholders since the internet corporate reporting positively improve the value of listed manufacturing firms in Nigeria. It is also recommended that the management of Nigerian quoted manufacturing companies should embrace the internet as a tool for communicating with stakeholders in order to improve value of their earnings per share and shares prospects in the market.