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Internet disclosure and corporate performance: A case study of the international shipping industry

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  • Andrikopoulos, Andreas
  • Merika, Anna A.
  • Triantafyllou, Anna
  • Merikas, Andreas G.

Abstract

Dissemination of information via corporate websites is considered to be desirable, because it constitutes a way round modes of market failure, such as asymmetric information in capital markets and agency problems. This paper explores the relationship between internet disclosure, profitability and financial structure in the shipping sector. Its value added lies in treating the disclosure–profitability relationship as a two-way relationship: while previous research concentrates on profitability as the main driver for greater internet disclosure, we argue that the higher the degree of internet disclosure of financial information, the more likely it is that the firm will experience enhanced profitability. Studying the websites of 171 international listed shipping corporations in 2010 we construct a disclosure index to measure the quantity of disseminated information for each firm in the sample and we explore the cross sectional determinants of disclosure performance. Measuring corporate performance with profitability, we develop a simultaneous equation model and our GMM results produce evidence of a statistically significant positive relationship between the extent of internet disclosure and corporate performance. Our finding largely explains why shipping firms are keen on making more and more financial information available via the web and has significant policy implications for executives, as it suggests that greater internet disclosure is not a mere effect of sound financial performance, but also, and perhaps more importantly, a requirement for it.

Suggested Citation

  • Andrikopoulos, Andreas & Merika, Anna A. & Triantafyllou, Anna & Merikas, Andreas G., 2013. "Internet disclosure and corporate performance: A case study of the international shipping industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 47(C), pages 141-152.
    • Handle: RePEc:eee:transa:v:47:y:2013:i:c:p:141-152
    DOI: 10.1016/j.tra.2012.10.016
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    Cited by:

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    2. Olli-Pekka Hilmola & Andres Tolli & Ain Kiisler, 2020. "Internet page content analysis of north European Sea ports," Journal of Shipping and Trade, Springer, vol. 5(1), pages 1-11, December.
    3. Yousef Ali Alwardat, 2020. "Internet Financial Reporting Disclosure in the Saudi Listed Manufacturing Companies," Business and Management Research, Business and Management Research, Sciedu Press, vol. 9(3), pages 1-13, September.
    4. Tarik Zaimovic & Azra Zaimovic & Anela Fazlic, 2015. "Internet Financial Reporting In Bosnia And Herzegovina," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 13(2), pages 21-34, November.
    5. Salvi, Antonio & Vitolla, Filippo & Rubino, Michele & Giakoumelou, Anastasia & Raimo, Nicola, 2021. "Online information on digitalisation processes and its impact on firm value," Journal of Business Research, Elsevier, vol. 124(C), pages 437-444.
    6. Andrikopoulos, Andreas & Merika, Anna & Merikas, Andreas & Sigalas, Christos, 2021. "Related party transactions and principal-principal conflicts in public companies: Evidence from the maritime shipping industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    7. Merika, Anna & Theodoropoulou, Sotiria & Triantafyllou, Anna & Laios, Alexandros, 2015. "The relationship between business cycles and capital structure choice: The case of the international shipping industry," The Journal of Economic Asymmetries, Elsevier, vol. 12(2), pages 92-99.
    8. Michail Bekiaris & Chrysoula Psimada & Tasos Sergios, 2014. "Internet Financial Reporting Quality and Corporate Characteristics: The Case of Construction Companies Listed in Greek and Cypriot Stock Exchange," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 41-57.

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