Internet Financial Reporting Disclosure Research Articles

Measuring Qualitative Characteristics of Internet Financial Reporting: Evidence from Malaysia

As the world economy undergoes a rapid digital transformation, Internet financial reporting (IFR) has evolved into an important platform for the dissemination of information to investors. It has also been a central topic of discussion among practitioners and researchers due to the lack of rigorous regulations to govern IFR practices, resulting in disclosures of financial reports varying across listed companies. This study aims to assess the level of compliance with the qualitative characteristics of IFR for companies listed on Bursa Malaysia. This study involves adopting 34 constructed index items based on prior literature and the use of a 5-point Likert scoring scale anchored from "very poor" (1) to "excellence" (5) to measure the fundamentals and enhance the qualitative characteristics of IFR, which is also in line with the "Revised Conceptual Framework for Financial Reporting" issued by the Malaysian Accounting Standards Board (MASB) in 2018. Non-probability purposive sampling was employed to select the companies from 11 relevant industries, comprising 160 listed companies from the main market of Bursa Malaysia. Annual reports and corporate governance statements were extracted from corporate websites for 2018. Findings suggest that most corporations that are listed in the main market of Bursa Malaysia have yet to fully comply with the MASB’s financial reporting framework, notably timeliness, which requires urgent improvement. Without strict IFR regulations, managers may also be free to act opportunistically by planning their IFR disclosure in a way that benefits both the company's reputation and their interests. This research enriches the body of literature on IFR and provides a measuring mechanism that can gauge the level of compliance with the qualitative characteristics of IFR. It acknowledges the importance of collective efforts from regulatory bodies to implement accounting reforms and the best IFR governance practices to harness information's usefulness in the Industrial Revolution era. 4.0.

Internet financial reporting disclosure index of e‐commerce businesses on social media

SummaryThe study measured the Internet Financial Reporting (IFR) disclosure index and compared the results across three continents of the global e‐commerce business. In addition, it documents various social media platforms used by e‐commerce. We use content analysis with a scoring matrix based on content, timeliness, technology, and support used in websites and a one‐way ANOVA. The findings identified an average IFR e‐commerce disclosure index of 0.735, which is of good quality as it approaches the value of 1. There is no difference in index IFR between the three continental zones overall, but slightly different from non‐e‐commerce companies. The results also prove that websites and blog media still dominate the use of social media, while other social media platforms have not provided financial information. Researchers in accounting have not conducted research topics on social media, so there are still limited references and narrow analytical content. This research will interest the e‐commerce business industry and compile their financial reporting through the website to improve the quality of their IFR and financial access. Since the e‐commerce business is an internet‐based company growing significantly, it can use other social media to reveal its reporting as decent work and economic growth. This subject is relatively innovative because none of the IFR disclosure index studies focuses on e‐commerce businesses on social media. It fills the research gap related to the characteristics of e‐commerce businesses, where almost all activities are internet‐based.

Pengaruh Ukuran Perusahaan, Profitabilitas, Kepemilikan Saham oleh Publik, dan Leverage Terhadap Pengungkapan Internet Financial Reporting

This research aims to determine the influence of company size, profitability, public ownership, and leverage on Internet Financial Reporting (IFR) disclosures in food & beverage subsector companies listed on the Indonesia Stock Exchange (BEI) in 2020-2022. The independent variables in the research are company size, profitability, public ownership, and leverage, while the dependent variable is IFR. The research sample was taken using a purposive sampling method, and 30 companies were obtained that met the sample criteria, resulting in a total of 90 observation data. The analysis technique used is multiple linear regression analysis processed with the SPSS v.25 application. The results of this research show that simultaneously the variables company size, profitability, public ownership and leverage have a positive effect on IFR disclosure, and partially the variables company size and profitability have a positive effect on IFR disclosure. However, the variables of public ownership and leverage have no effect on IFR disclosure.

ANALISIS PENGUNGKAPAN INTERNET FINANCIAL REPORTING PADA PERUSAHAAN SUBSEKTOR FARMASI DI INDONESIA

Disclosure of Internet Financial Reporting (IFR) makes it easy for users or interested parties to find financial information through the company's official website. This study aims to reveal the effect of profitability, leverage, and company size on Internet Financial reporting disclosure in the pharmaceutical subsector in Indonesia. The population of this research is all pharmaceutical sub-sector companies that are on the Indonesia Stock Exchange until 2021. The sampling technique used in this study is using the Purposive Sampling method with an observation period from 2019 to 2021. The sample data is then analyzed using multiple linear regression analysis using SPSS 27.0. The results of the analysis of this study are that the Leverage and Firm Size variables influence IFR, while the Profitability variable does not influence IFR. Meanwhile, the independent variables used in the study simultaneously affect IFR.

ANALISIS PENGUNGKAPAN INTERNET FINANCIAL REPORTING PADA PERUSAHAAN SUBSEKTOR FARMASI DI INDONESIA

Disclosure of Internet Financial Reporting (IFR) makes it easy for users or interestedparties to find financial information through the company's official website. This study aims toreveal the effect of profitability, leverage, and company size on Internet Financial Reportingdisclosure in the pharmaceutical subsector in Indonesia. The population of this research is allpharmaceutical sub-sector companies that are on the Indonesia Stock Exchange until 2021. Thesampling technique used in this study is using the Purposive Sampling method with an observationperiod from 2019 to 2021. The sample data is then analyzed using multiple linear regressionanalysis using SPSS 27.0. The results of the analysis of this study are that the Leverage and FirmSize variables influence IFR, while the Profitability variable does not influence IFR. Meanwhile,the independent variables used in the study simultaneously affect IFR.

Pengaruh Kekayaan Daerah dan Belanja Daerah terhadap Pengungkapan Internet Financial Reporting (IFR) pada Pemerintah Daerah

This study is a quantitative study that aims to obtain empirical evidence regarding the influence of regional wealth and regional expenditure on the disclosure of Internet Financial Reporting (IFR) in local governments. The population in this study is the district/city government in West Sumatra Province for the period 2018-2020 for 3 years. This study uses purposive sampling method in selecting the sample, with a sample size of 19 districts/cities in West Sumatra Province. The type of data in this study is secondary data obtained from BPK. Analysis of the data used is multiple regression analysis. The results of this study indicate that regional wealth has no effect on IFR disclosure, and regional expenditures have a negative and significant effect on IFR disclosure.

The impact of internet financial reporting on Egyptian company’s performance

Purpose This study aims to examine the impact of internet financial reporting (IFR) on companies’ performances as measured by three performance indicators, namely, stock price, stock returns and company value. Design/methodology/approach A sample of 139 non-financial companies listed in the Egyptian stock exchange is used and classified as 108 IFR companies and 31 non-IFR companies. To test the research hypotheses, an independent t-test and multiple linear regression analyses are used. Findings The results indicate that there are no significant differences between IFR companies and non-IFR companies for both stock price and stock return variables. Conversely, there is a significant difference between IFR companies and non-IFR companies in the company value variable. These results imply rejecting hypotheses H1 and H4 and accepting the hypothesis of H7 that the presence of IFR has an impact on company value. The multiple regression analyses results indicate a significant relation between the scope of IFR and stock price. Likewise, between the degree of IFR and company value. Both degree and scope of IFR have an insignificant impact on stock return, which infer that applying different performance measures can reveal different conclusions. Research limitations/implications This research is a snapshot of IFR limited to a cross-sectional study and could not study the longitudinal data of internet reporting. Second, Marston and Polei (2004) contend that “weights contain an element of subjectivity, which cannot be completely avoided in the composition of such a score” (p. 297) and a variation in the disclosure index can lead to a modification in the results (Kaur and Kaur, 2020). This research applied a weighted index to measure the degree of IFR, which may affect the results and may change it if other indexes are applied. Moreover, the scores of the degree and scope of information disclosure are assumed to be similar every year due to the lack of information regarding the variations in content and presentation in the companies’ websites. Finally, the absence of a complete data set and stock prices for some companies in the sample. Practical implications To enhance the quantity and quality of IFR could be implemented through setting regulations and standards to govern IFR practices companies in Egypt. Moreover, the trade-off of the requirement of the Egyptian Financial Supervisory Authority for Egyptian companies make information available online and the secrecy culture profound in the Egyptian society (Ahmed et al., 2015) involve assigning a regulatory body for monitoring the IFR practices to ensure disseminating timely and accurate information that helps investors make rational decisions. Social implications The researchers recommend the suggestion to have an external assurance conducted by external auditors to enhance the accuracy and credibility of the IFR information. Originality/value Based on prior literature, no studies in Egypt compare between IFR companies and non-IFR companies concerning stock price and company value as measured by Tobin’s Q. Moreover, few research studies in Egypt covered the degree of IFR disclosure whilst not addressing the impact on the stock price. In addition, no prior study examined the scope of IFR disclosure in Egypt. Therefore, the research findings attribute to literature.

The Effect of Regional Income, Leverage, Regional Property on Internet Financial Reporting Disclosure

This study aims to analyze the effect of local revenue, leverage, local government wealth on the disclosure of web-based local government financial statements. The population and sample of this study are the regional government financial reports of Central Java Province which consist of 29 districts and 6 cities for the 2015-2018 fiscal year which have been audited by the BPK. The analysis method uses a multiple regression panel data model with the Eviews 9 application. The results of this study indicate that local revenue and general allocation funds have a significant positive effect on the disclosure of web-based local government financial reports. However, the wealth of the local government in turn has a negative effect on the disclosure of web-based local government financial reports. Meanwhile, leverage has no effect on the disclosure of web-based local government financial statements. The results of this study can be used as a consideration for the government informing regulations, rewards, and sanctions in order to increase the transparency of digital financial reports.

Internet Financial Reporting Disclosure in the Saudi Listed Manufacturing Companies

The broad aim of this study was to measure the extent of Internet Financial Reporting Disclosure (IFRD) in the Saudi Listed Manufacturing Companies (SLMCs). It extends the current literature on IFRD by providing empirical data on Saudi Arabia, a developing country which has been scarcely researched in this field of study. Fifty-three SLMCs were investigated based on an unweighted checklist of 75 items (20 for presentation and 55 for content). The study also employed multi regression analysis to examine the status of IFRD. The analysis revealed an overall level of IFRD of 45 per cent. The study also provided empirical evidence of significant positive associations between IFRD and both company size and profitability. However, no significant positive associations were found between IFRD and company leverage or listed age. The study provides empirical evidence of a moderate IFRD rate. This is likely to motivate Saudi regulatory bodies and administrators of the SLMCs to increase the amount of information they disclose on their websites in order to enhance the transparency of their reports and meet all stakeholder expectations. The findings of this study are exclusive to the SLMCs and do not provide a complete picture about online disclosure by all Saudi listed companies. Therefore, future studies could investigate the status of online disclosure across all Saudi Listed Companies.

Internet Financial Reporting Practices in Saudi Arabia

This paper examines the firm characteristic and corporate governance determinants of Internet Financial Reporting (IFR) practices in Saudi Arabia to help address the paucity of research for MENA region firms. The paper employs manual content and regression analyses of online annual report data for Saudi listed firms for the year 2018 using 28 IFR disclosure items. The results show that Saudi firm IFR has increased over time compared to previous studies to an average of 85% disclosure as a result of IFRS implementation and new corporate governance regulations. Firm size is a positive determinant of IFR disclosure, firm age and ownership concentration are negative drivers. Further, the extent of IFR disclosure varies by industry type, while profitability, liquidity, leverage, board size, board independence and role duality have no impact on IFR disclosure. Employing agency and signalling theories, the paper determines the influence of firm characteristics and corporate governance on IFR, identifying implications for stakeholders, and providing some evidence on the impact of IFRSs and corporate governance regulation on such disclosure. Further, the paper provides additional insight into progress towards Saudi’s Vision 2030.

Internet Financial Reporting (IFR) Disclosure Position and Firm Value

Nowadays, Internet Financial Reporting (IFR) disclosure is the global way to display firm performance to investors and stakeholders. Hence, it is imperative that firms properly manage their IFR disclosure to ensure their existence is conspicuous to the world in order to foster their firm value. We believe that i n order to manage IFR disclosure, firms would probably behave either ritualistically or opportunistically in terms of their IFR disclosure position. In t his study, we propose a quantitative measurement for the IFR disclosure position, i.e. utilizing IFR presentation score, taking into consideration latest IFR rules and regulations worldwide as well as relevant extant empirical studies . Based on a sample of 320 Malaysian listed firms in year 2012, o ur regression analysis shows that our quantitative measurement for the IFR disclosure position variable has a positive association with firm value. W e found that 87 firms, categorized as poor performing seems to manage their IFR disclosure position ritualistically. While 233 firms, categorized as well performing manage their IFR disclosure position opportunistically. Hence, our study provide circumstantial evidence that firms’ financial performance has a relationship with IFR disclosure position. In further analysis, our findings show that stakeholders seem to perceive ritualistic IFR disclosure’s position is empirically valid to value poor performing firms. However, stakeholders seem to negate the opportunistic IFR disclosure position in valuing well performing firms even though theoretically the opportunistic IFR disclosure position should be able to offer vast benefits that could enhance firms’ value. Our findings should be useful to firms and stakeholders likewise in making firms’ valuation taking into consideration the existence of firms’ financial performance and IFR disclosure position.

Determinants of internet financial reporting (IFR): A study of Indian corporate sector

The objective of the present study is to test whether is any significant influence of market capitalization, debt-asset ratio, financial performance, profit level, and stock price on IFR Disclosure Index and the tests are conducted by measuring IFR index as a dependent variable and the above five independent variables in 252 sample companies selected from BSE-500 on the basis of stratified random sampling. The results indicated that IFR index was very strongly associated with market capitalization

The effect of board of directors and audit committee effectiveness on internet financial reporting

Purpose The purpose of this paper is to examine the effect of board of directors and audit committee effectiveness on the level of internet financial reporting (IFR) disclosure practices. Design/methodology/approach The sample consists of 152 listed financial companies in Gulf Cooperation Council (GCC) countries. Based on agency theory, the authors posit that board of directors and audit committee effectiveness influence corporate IFR disclosure practice. Content analysis approach, based on an un-weighted index of 35 IFR items is used to measure the level of IFR disclosure. Thus, multiple regression analysis is utilized to analyse the results of this paper. Findings The results show that board of directors and audit committee effectiveness has significant influence on the level of IFR disclosure. Research limitations/implications One potential limitation of this paper is that the sample is drawn only from the GCC listed financial companies. Therefore, the findings cannot be generalized to other than the financial institutions. Practical implications The finding(s) highlights the importance of board of directors and audit committee characteristics in corporate governance and in the development of financial markets that foster IFR disclosure. Originality/value This paper extends previous IFR disclosure studies by considering both the role of board of directors and audit committee effectiveness score in examining IFR disclosure.

Internet Financial Reporting: A Comparative Study Of Private And Public Sector Companies In India

The degree of the internet financial reporting (IFR) sophistication differs from an international level, National level and company's level. In the current world of globalised economies environment, the Internet has wide spread as communication mode. Recently most of the companies have practicing to publish their financial results and other relevant information to business on the website. It has been practically observed that the companies information disclosure on their website mainly depends up on the competitors’ practices on disclosure and principles of Corporate. This paper studies the disclosure of IFR with comparative study of Indian public and private sector companies on the websites. 252 samples of companies with 217 private and 35 public companies has taken for the study. Internet Financial Reporting (IFR) disclosure index has been prepared and correlated with determinates of the companies to measure relationship IFR disclosure by the sample companies.