Impact of Company Characteristics on Web-Based Business Reporting in India

The purpose of this study is to analyze the disclosure practices through web by Indian companies and investigate empirically some company characteristics as determinants of such practices. Using a 56-item index, content analysis of websites was performed for 181 largest Indian-listed companies. Further, the study employs univariate analysis to examine the effect of each company characteristics on the level of information disclosed on the web. The study revealed that 181 companies had websites, which represents 91% of total sample companies. All 181 companies are making use of the web for dissemination of their business information, but there is a great deal of variation in the frequency with which different items are disclosed on websites. The results of univariate regression analysis show that firm size and ownership dispersion are significantly and positively associated with the level of corporate disclosure through web. This investigation concerns a country with an emerging market, India. Thus, the results of this study have important implications for regulators and enforcement bodies, companies, practising chartered accountants, investors, researchers and academicians.