1. Introduction Internet is undoubtedly one of most significant means of communication in our days. Its use enables worldwide dissemination of information and encourages investments (Aly, Simon & Hussainey, 2010). In addition, it supports better functioning of capital markets by enhancing companies' ability to provide investors with up to date, timely information (Abdelasalam, Bryant & Street, 2007). Consequently, its wide use in a business environment can have a significant impact on business activities and related requirements for financial reporting. According to International Accounting Standards Board the objective of financial reporting is to provide financial information about reporting entity that is useful to present and potential equity investors, lenders and other creditors in making decisions in their capacity as capital providers (IASB, 2008). In this context, web based business information is considered helpful in making investment and other business decisions, (Financial Accounting Standards Board 2000). Companies have several potential motives to provide financial information on internet, which among others include, reduction of cost and time for distribution of information, communication with previously unidentified consumers, supplementation of traditional disclosure practices, increase of amount and type of information disclosed and improvement of access to potential investors for small companies, (FASB, 2000). The objective of this study is twofold. On one hand, it aims to examine disclosure practices of listed construction companies and assess quality of their financial reporting provided through internet. On other hand, it purports to investigate association of selected firm characteristics with level of internet financial reporting. For this purpose a disclosure index was constructed consisting of 51 items that cover 4 broad categories: content, technology, user support and timeliness. Since 2009 and especially 2010, deep concern on solvency of European states has highly affected financial markets. Therefore, study of internet disclosures in Greece and Cyprus presents an additional interest due to specific financial conditions created by economic crisis in these countries. Moreover, financial reporting of Greek companies provided through internet is perceived by auditors to be of moderate quality (Tasios & Bekiaris, 2012). The findings of study contribute to existing literature of internet financial reporting by strengthening evidence on relationship between extent of disclosure and profitability, leverage, firm age and ownership dispersion. Furthermore, index of study could be a useful tool to managers of companies in their effort to improve quality of internet reporting by identifying areas with weaknesses and inefficiencies. The remainder of paper is organized as follows: part two presents an overview of relevant research, while part three develops research hypotheses examined in study. Research methodology is presented in part four, which includes construction of index and development of research model. The results of study are included in part five and a summary of conclusions is presented in part six. 2. Literature Review Internet financial disclosures are voluntary and as no relevant or common legal framework that regulates them exists, differences occur in corporate disclosure practices. Some companies disclose only a part of their financial statements using a low level of technology, while others disclose a whole set of financial statements using technological advancements of internet such as, multimedia and analytical tools, (Budisusetyo & Almilia, 2008). As purpose of financial reporting is to provide information useful for decision making, timeliness consists another crucial element of internet financial reporting (Liapis, Katsianis and Galanos, 2013; Eriotis, 2004; Soltani, 2002). …