Impact of Governance Structure, Blockholder, Company Age, and Technology Cost on the Implementation of Internet Financial Reporting (original) (raw)
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2nd Annual International Conferences on Accounting and Finance (AF 2012), 2012
The purpose of this study is to find empirical evidence whether corporate governance mechanisms (ownership structure, independent commissioners, and audit committee characteristics) affect the level of voluntary disclosure of Internet Financial Reporting (IFR). Populations used in this study are all of 420 Indonesian companies listed in Indonesian Stock Exchange (IDX) in the period of 2010. The sample of this research is determined using purposive sampling method. There are 95 companies fulfill the criteria. Data were analyzed using multiple regression analysis. The result indicates that among corporate governance mechanisms, only audit committee meeting frequencies influence voluntary disclosure of IFR.
2015
Internet financial reporting and corporate governance<br> issues are in the focus of academic and professional studies due to<br> their attributed importance by stakeholders of corporations. Major<br> aim of this study is to reveal the relationship between internet<br> financial reporting which is held as dependent variable and some<br> indicators of corporate governance such as the ratio of managerial<br> ownership, blockholder ownership, number of independent members<br> in the board of directors, frequency of meetings by audit committee<br> and education level of audit committee members which are held as<br> independent variables. Main purpose is to reveal the effect of<br> corporate governance on the voluntary efforts of Internet Financial<br> reporting. The scope of the research is limited to the Turkish<br> Corporations listed in Borsa Istanbul (Istanbul Stock Exchange) and<br> findings which are gen...
The International Journal of Accounting and Business Society, 2016
This study aims to investigate the effects of the corporate governance and ownership structure on the internet financial reporting in manufacturing companies in Indonesia. The variables used are internet financial reporting, board of director competence, board of director size, board of director meeting, audit committee independence, audit committee competence, audit committee size, audit committee activity, ownership concentration on Top 5 shareholder and number of shareholders. The results showed that board of director competency, board of director meeting, and audit committee competence have a positive effect on internet financial reporting. The results support institutional theory. However, board of director size shows affects negatively on internet financial reporting. On the other hand, other five (5) variables examined in this study namely audit committee independence, audit committee size, audit committee activity, ownership concentration on top 5 shareholders, and number of shareholders are not proven to affect the internet financial reporting. While the results of audit committee activity and ownership concentration on top 5 shareholders analysis support institutional theory, the results of audit committee independence, audit committee size, and number of shareholders do not support institutional theory.
Corporate Governance, Firm Characteristics and Internet Financial Reporting
Journal of corporate ownership and control
This study investigates the effect of corporate governance and firm characteristics on the Internet financial reporting (IFR) of the Egyptian listed companies. We develop a disclosure index to measure the three components of the IFR for the Egyptian listed corporations by using an un-weighted checklist. The results find a significant relationship between the three components of IFR (TOTAL, CONTENT and PRESENTATION) and firm size, ownership diffusion, type of business, profitability, audit type, institutional ownership and board size. The results indicate that large non-financial companies that are audited by the big four auditing companies with high diffusion in their ownership and lower presentation of institutions in the ownership structure are more likely to be related to TOTAL and CONTENT. In addition, large profitable companies with high diffusion in their ownership are more likely to be related to TOTAL and PRESENTATION. Finally, companies with a large board size are associated only with PRESENTATION.
This paper examined the association between corporate governance mechanisms, ownership structures, Internet visibility and Internet financial reporting. This paper argues that the adoption of technological-based innovation may involve more complex factors than considered by agency theory. Institutional theory was used to generate hypotheses about factors specific to Malaysia context, since the companies may adopt technological-based innovation when seeking for legitimacy during the increasing institutionalization process. The researcher examined the contents of listed companies' Web sites by adapting the richer and more comprehensive disclosures/attributes index from FASB . The results in the regression model show Internet financial reporting is positively significantly related to independent non-executive directors, directors with accounting and business qualification, board size and shareholders numbers. Audit committee with financial and accounting qualification is also positively significantly associated with Internet visibility. These findings show that competent directors and accounting professional are establishing good reporting practices to create homogeneous organizational practices in response to uncertainty in technology. This process is in line with the argument of mimetic isomorphisms under the institutional theory. Following the corporate governance reforms, the companies are facing pressure and almost obliging them to disseminate information by Internet in seeking organizational legitimacy, so that capital market does not interpret the absence of information as a sign of lack of accountability and transparency. In addition, Malaysia is an emerging economy nation, which, on the global state, is under coercive pressure, normative and mimetic, institutionalizing expectation from the global capital markets. All these pressures can be identified as determinants that have affected the adoption of Internet reporting. The level of adoption for Internet reporting at the organizational level will be affected by the regulatory system's effectiveness and organizations' willingness to make a positive response to institutional pressure. This paper highlights important policy implications by showing the applicability of institutional theory in the contexts that have limited studies previously.
Due to globalization and advanced technology, corporate Governance and internet financial reporting (IFR) are becoming increasingly important topics as more companies are expanding globally and the economies are becoming closely interrelated. Kingdom of Bahrain as part of the developing countries had paid a lot of attention to corporate governance recently. Therefore, this study investigates the relationship between corporate governance and internet financial reporting. Extensive literature review was carried out and a multi-regression analysis was used in order to investigate the relationship between corporate governance and internet financial reporting for the companies that are listed in Bahrain bourse. The findings indicate that the relationship between corporate governance and internet financial reporting is weak due to the fact that the board characteristics do not affect the level of disclosing information via the internet (IFR). However, the board size and big4 companies have a positive relationship with IFR. The study recommends that regulatory bodies should develop a guideline of disclosing information through the internet in order to enhance the corporate transparency level among Bahrain listed companies.
2017
This study aims to examine the effect of company size, company age, public ownership, and audit quality toward Internet financial reporting on companies listed in Indonesia Sharia Stock Index (ISSI). This study uses secondary data from the financial statements issued by each company for the period 2015 and a report published by the Indonesia Stock Exchange (IDX). Logistic regression analysis model is used to analyze the data. The result of the research shows that IFR is influenced positively and significantly by company size, company age and public ownership indicating that the higher company size, company age and public ownership of a company, the higher the company's opportunity to do IFR. Meanwhile, IFR is influenced positively but not significant by audit quality, this because there are 60 companies that audited by non big ten accounting firms but doing IFR and there are 12 companies that audited by big ten accounting firms but not doing IFR. The influence of the four variab...
The impact of corporate governance on Internet financial reporting
Journal of Accounting and Public Policy, 2008
This study investigates the effect of corporate governance mechanisms on Internet financial reporting (IFR) behavior. We rely upon agency theory to predict an association between the extent of a firm's Internet disclosure behavior and its corporate governance structures. We measure corporate governance by shareholder rights, ownership structure, and board composition. We develop a disclosure index to measure IFR activities in the Investor Relations sections of a sample of publicly traded US firms. Specifically, we measure IFR by disclosure content, presentation format, required filings, voluntary disclosures, and corporate governance disclosures. Results indicate that firms with weak shareholder rights and a higher percentage of independent directors are more likely to engage in IFR. Interestingly, these firms are also more likely to provide disclosure regarding their corporate governance structures on their corporate web sites. As corporate governance and disclosure are considered necessary measures to protect shareholders, our results provide empirical evidence to policy makers and regulators for implementing new corporate governance requirements and IFR guidelines.
Impact of ownerships and control on internet financial reporting
Journal of Contemporary Accounting
The objective of this study is to empirically investigate the impacts of ownerships (managerial ownership and institutional ownership) and control (number of independent commissioners, frequency of audit committee meeting, and audit committee competence) on Internet Financial Reporting (IFR). This study was conducted on manufacturing companies listed at the Indonesian Stock Exchange (BEI) in 2015-2019. This study used secondary data, namely annual financial statements which were accessed through the companies’ websites. The firm years counted 200 with 40 companies and 5 years of research duration. The dependent variable is IFR which analyzed the contents of the websites with the maximum score of 54. The independent variables are managerial ownership, institutional ownership, number of independent commissioners, frequency of audit committee meeting, and competence of audit committee. The results show that institutional ownership, frequency of audit committee meeting, and audit commit...
Internet financial reporting, infrastructures and corporate governance: An international analysis
Review of Development Finance, 2012
Using a panel of 44 developed and developing countries, this paper analyzes the macro-environmental determinants of Internet financial reporting (IFR) within the context of corporate governance models, and thus, addresses the question of which governance model's disclosure demands are more associated with IFR. Both physical and institutional infrastructures are shown to be important determinants of a country's adoption of IFR. Along with the corporate governance structure, these infrastructures combine with IFR to enhance transparency and market efficiency, both major goals of financial reporting and disclosure. These findings point to requisite environmental infrastructures governments must provide or foster for firms within their confines to effectively adopt IFR and thus, reap the attendant benefits of disclosure. They also contribute to the debate on harmonization of international financial reporting by showing that requisite environmental infrastructures are a precondition for the success of any reporting system.