IDEAS home Printed from https://ideas.repec.org/a/ibf/acttax/v7y2015i1p75-91.html
   My bibliography  Save this article

Internet Financial Reporting And Disclosure Practices Of Publicly Traded Corporations: Evidence From Sri Lanka

Author

Listed:
  • Nirosh Kuruppu
  • Peter Oyelere
  • Hamdan Al Jabri

Abstract

Although Internet Financial Reporting (IFR) has become standard practice rather than the exception in most Western countries, empirical evidence of the phenomenon is only just emerging in developing economies. This paper examines the use of the internet as a medium for the voluntary communication of financial information by publicly traded companies on the Colombo Stock Exchange (CSE) in Sri Lanka. The 244 companies listed on the CSE were analysed by its 20 industry sectors. The results indicate that IFR is still at a nascent stage in Sri Lanka and there are considerable opportunities and challenges for all stakeholder parties. While 59 percent of companies maintain websites, only 63 of these (about 43%) use their websites to communicate financial information. This indicates that companies in Sri Lanka do not fully garner the benefits of engaging in IFR. However, the online annual reports of the latter IFR companies were found to be highly accessible, with 87 percent of the websites enabling users to locate information in three mouse clicks or less. Industry affiliation is found to be an important factor in determining the intensity of IFR practices as revealed by the statistically significant Pearson Chi-square test and the Likelihood ratio. It was also found that although a variety of reporting formats are utilised for engaging in IFR, PDF is the most widespread format with 92 percent of CSE listed companies using this medium.

Suggested Citation

  • Nirosh Kuruppu & Peter Oyelere & Hamdan Al Jabri, 2015. "Internet Financial Reporting And Disclosure Practices Of Publicly Traded Corporations: Evidence From Sri Lanka," Accounting & Taxation, The Institute for Business and Finance Research, vol. 7(1), pages 75-91.
    • Handle: RePEc:ibf:acttax:v:7:y:2015:i:1:p:75-91
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v7n1-2015/AT-V7N1-2015-6.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Michael John Jones & Jason Zezhong Xiao, 2004. "Financial reporting on the Internet by 2010: a consensus view," Accounting Forum, Taylor & Francis Journals, vol. 28(3), pages 237-263, September.
    2. Yosr Trabelsi & Pascal Dumontier & . Labelle, 2008. "Incremental Voluntary Disclosure on Corporate Web Sites, Determinants and Consequences," Post-Print halshs-00366378, HAL.
    3. Peter Oyelere & Nirosh Kuruppu, 2012. "Voluntary internet financial reporting practices of listed companies in the United Arab Emirates," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 13(3), pages 298-315, November.
    4. Giacomo Boesso & Kamalesh Kumar, 2007. "Drivers of corporate voluntary disclosure," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 20(2), pages 269-296, April.
    5. Debreceny, Roger & Gray, Glen L. & Rahman, Asheq, 2002. "The determinants of Internet financial reporting," Journal of Accounting and Public Policy, Elsevier, vol. 21(4-5), pages 371-394.
    6. Peter Oyelere & Ehab K. A. Mohamed, 2007. "Internet Financial Reporting In Oman," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 1(2), pages 45-54.
    7. Laswad, Fawzi & Fisher, Richard & Oyelere, Peter, 2005. "Determinants of voluntary Internet financial reporting by local government authorities," Journal of Accounting and Public Policy, Elsevier, vol. 24(2), pages 101-121.
    8. Alfred Wagenhofer, 2003. "Economic Consequences Of Internet Financial Reporting," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 55(4), pages 262-279, October.
    9. Efrim Boritz, J. & No, Won G., 2005. "Security in XML-based financial reporting services on the Internet," Journal of Accounting and Public Policy, Elsevier, vol. 24(1), pages 11-35.
    10. Nilmini Wickramasinghe, 2006. "Knowledge creation: a meta-framework," International Journal of Innovation and Learning, Inderscience Enterprises Ltd, vol. 3(5), pages 558-573.
    11. Trabelsi, Samir & Labelle, Réal & Dumontier, Pascal, 2008. "Incremental Voluntary Disclosure on Corporate Websites, Determinants and Consequences," Journal of Contemporary Accounting and Economics, Elsevier, vol. 4(2), pages 120-155.
    12. Pontus Hedlin, 1999. "The Internet as a vehicle for investor relations: the Swedish case," European Accounting Review, Taylor & Francis Journals, vol. 8(2), pages 373-381.
    13. Wai Kin Chan & Nilmini Wickramasinghe, 2006. "Using the internet for financial disclosures: the Australian experience," International Journal of Electronic Finance, Inderscience Enterprises Ltd, vol. 1(1), pages 118-150.
    14. Nilmini Wickramasinghe & Sharman Lichtenstein, 2006. "Supporting knowledge creation with e-mail," International Journal of Innovation and Learning, Inderscience Enterprises Ltd, vol. 3(4), pages 416-426.
    15. Catherine Gowthorpe & Oriol Amat, 1999. "External reporting of accounting and financial information via the Internet in Spain," European Accounting Review, Taylor & Francis Journals, vol. 8(2), pages 365-371.
    16. Divya Verma Gakhar, 2012. "Perception of stakeholders on web‐based corporate reporting practices," Journal of Advances in Management Research, Emerald Group Publishing Limited, vol. 9(1), pages 64-76, May.
    17. Ettredge, Michael & Richardson, Vernon J. & Scholz, Susan, 2002. "Dissemination of information for investors at corporate Web sites," Journal of Accounting and Public Policy, Elsevier, vol. 21(4-5), pages 357-369.
    18. Baker, C. Richard & Wallage, Philip, 2000. "The Future of Financial Reporting in Europe: Its Role in Corporate Governance," The International Journal of Accounting, Elsevier, vol. 35(2), pages 173-187, July.
    19. Luciana Spica Almilia, 2009. "Determining Factors of Internet Financial Reporting in Indonesia," Accounting & Taxation, The Institute for Business and Finance Research, vol. 1(1), pages 87-99.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rieke Pernamasari, 2019. "Analysis of Index Internet Financial Reporting: Studies in Banking Companies in Indonesia, Malaysia and Singapore," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 9(1), pages 150-159, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jean-François Gajewski & Li Li, 2015. "Can Internet-Based Disclosure Reduce Information Asymmetry?," Post-Print halshs-01497381, HAL.
    2. Gajewski, Jean-François & Li, Li, 2015. "Can Internet-based disclosure reduce information asymmetry?," Advances in accounting, Elsevier, vol. 31(1), pages 115-124.
    3. Soriya Sushila & Dhaigude Amol, 2016. "A Study of Corporate Web-Based Reporting in Hotel Industry," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(11), pages 661-680, November.
    4. Helmi A. Boshnak, 2021. "Internet Financial Reporting Practices in Saudi Arabia," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(9), pages 1-15, July.
    5. Laetitia Pozniak, 2013. "Internet Financial Communication: Evidence from Unregulated Markets of Brussels and Paris," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 7(5), pages 107-122.
    6. Paola Ramassa & Costanza Di Fabio, 2016. "Web-Based Financial Reporting: An Interpretative Model for Corporate Communications on Social Media," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2016(2), pages 79-112.
    7. Pinto, Inês & Ng Picoto, Winnie, 2016. "Configurational analysis of firms' performance: Understanding the role of Internet financial reporting," Journal of Business Research, Elsevier, vol. 69(11), pages 5360-5365.
    8. Sarra Elleuch Hamza & Mouna Ben Ahmed Hedrich, 2008. "Les déterminants de la divulgation des informations financières via Internet adoptée par les entreprises tunisiennes : une démarche qualitative et quantitative," Post-Print halshs-00524888, HAL.
    9. Dr. Mohd Noor Azli bin Ali Khan Author_Email: mnazli@yahoo.com & Prof. Dr. Noor Azizi bin Ismail, 2011. "Malaysian Academics’ Perceptions Of Internet Financial Reporting," Annual Summit on Business and Entrepreneurial Studies (ASBES 2011) Proceeding 2011-024-163, Conference Master Resources.
    10. Dr. Mohd Noor Azli bin Ali Khan & Professor Dr. Noor Azizi bin Ismail, 2011. "The Use Of Disclosure Indices In Internet Financial Reporting Research," Journal of Global Business and Economics, Global Research Agency, vol. 3(1), pages 157-173, July.
    11. Isabel‐María García Sánchez & Luis Rodríguez Domínguez & Isabel Gallego Álvarez, 2011. "Corporate governance and strategic information on the internet," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 24(4), pages 471-501, May.
    12. Bruno Oxibar, 2010. "Communication Financiere Sur Les Sites Internet Des Groupes Cotes Francais," Post-Print hal-00479489, HAL.
    13. Ivica Pervan, 2006. "Voluntary financial reporting on the internet – analysis of the practice of Croatian and Slovene listed joint stock companies," Financial Theory and Practice, Institute of Public Finance, vol. 30(1), pages 1-27.
    14. 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.
    15. Doaa Aly & Jon Simon & Khaled Hussainey, 2010. "Determinants of corporate internet reporting: evidence from Egypt," Managerial Auditing Journal, Emerald Group Publishing, vol. 25(2), pages 182-202, January.
    16. Turel, Asli, 2010. "The Expectation Gap in Internet Financial Reporting: Evidence from an Emerging Capital Market," MPRA Paper 29800, University Library of Munich, Germany.
    17. 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.
    18. Spanos, Loukas & Mylonakis, John, 2006. "Internet corporate reporting in Greece," MPRA Paper 42997, University Library of Munich, Germany.
    19. Ping Guan & Liangrong Song & Haimin Cao, 2016. "Study on Internet Investor Relations Management Evaluation of Listed Companies in China," Accounting and Finance Research, Sciedu Press, vol. 5(1), pages 121-121, February.
    20. Laetitia Pozniak & Perrine Ferauge, 2015. "Determinants Of Internet Corporate Social Responsibility Communication: Evidence From France," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 9(2), pages 53-63.

    More about this item

    Keywords

    Internet Financial Reporting; Voluntary Disclosure; Electronic Financial Reporting; Financial Report Accessibility; Corporate Communication; Sri Lanka;
    All these keywords.

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:acttax:v:7:y:2015:i:1:p:75-91. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.