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The use of Web sites as a disclosure platform for corporate performance

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  • Cormier, Denis
  • Ledoux, Marie-Josée
  • Magnan, Michel

Abstract

Adopting a stockholders' interests' perspective, we explore three related questions: (1) What are the scope and patterns of corporate performance disclosure on the Internet? (2) What are the determinants of the extent and scope of corporate performance disclosure on the Internet? (3) Is corporate performance disclosure on the Internet relevant for valuation of a firm's earnings? Corporate performance disclosure relates to corporate actions and initiatives that directly affect society and, ultimately, stockholders' wealth. We focus on Web (HTML) disclosure. Our sample comprises Canada's largest publicly-traded firms, many of which are also SEC registrants. The extent and scope of web disclosure by these firms is rated using a coding grid. Regarding the first question, three disclosure patterns emerge: (1) firms providing disclosure about innovation, development and growth also tend to report about customer value as well as maintaining a Web site with good capabilities (business-related disclosure), (2) disclosure about human/intellectual capital is linked to social responsibility disclosure (social-related disclosure) and, (3) the disclosure of financial performance and corporate governance practices are both closely linked together (financial-related disclosure). Regarding the second question, firms apparently take into account variables proxying for information costs and benefits accruing to stockholders when determining the extent of their Web disclosure. Finally, regarding the third question, a firm's web-based performance disclosure appears to affect its earnings valuation multiple, although in a differential manner according to the nature of the information being conveyed.

Suggested Citation

  • Cormier, Denis & Ledoux, Marie-Josée & Magnan, Michel, 2009. "The use of Web sites as a disclosure platform for corporate performance," International Journal of Accounting Information Systems, Elsevier, vol. 10(1), pages 1-24.
    • Handle: RePEc:eee:ijoais:v:10:y:2009:i:1:p:1-24
    DOI: 10.1016/j.accinf.2008.04.002
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    2. Raf Orens & Walter Aerts & Denis Cormier, 2010. "Web‐Based Non‐Financial Disclosure and Cost of Finance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 37(9‐10), pages 1057-1093, November.
    3. Claudio Vitari & Isabelle Bourdon & Florence Rodhain, 2017. "Les systèmes de communication Internet des entreprises du CAC40 : une étude longitudinale (2007-2015)," Post-Print halshs-01923267, HAL.
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    9. Cho, Charles H. & Roberts, Robin W., 2010. "Environmental reporting on the internet by America's Toxic 100: Legitimacy and self-presentation," International Journal of Accounting Information Systems, Elsevier, vol. 11(1), pages 1-16.
    10. José Manuel López‐Fernández & Mariluz Maté‐Sánchez‐Val & Francisco Manuel Somohano‐Rodriguez, 2021. "The effect of micro‐territorial networks on industrial small and medium enterprises' innovation: A case study in the Spanish region of Cantabria," Papers in Regional Science, Wiley Blackwell, vol. 100(1), pages 51-77, February.
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    12. Salvi, Antonio & Vitolla, Filippo & Giakoumelou, Anastasia & Raimo, Nicola & Rubino, Michele, 2020. "Intellectual capital disclosure in integrated reports: The effect on firm value," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
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