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The Use Of Disclosure Indices In Internet Financial Reporting Research


  • Dr. Mohd Noor Azli bin Ali Khan

    (Faculty of Management and Human Resource Development, Universiti Teknologi Malaysia, Johor)

  • Professor Dr. Noor Azizi bin Ismail

    (College of Business (Accounting), Universiti Utara Malaysia, Kedah)


The rapid growth of Internet technology has created the ability for firms to disseminate information to global audience. The revolution in information technology has paved the way to realize new tools, which may aid in different aspect to life. The most essential characteristics of the Internet are that information can be accesses at almost anytime and from anywhere. Consistent with the advancement of the Internet as a cheap but powerful communication device, disclosure of financial information on the Internet is becoming an increasingly popular subject of research. Many have investigated the extent, mode and quality of Internet Financial Reporting (IFR) over the last decade. However, most of early IFR researches are descriptive and exploratory in nature, thus unable to explain the phenomenon. Further, while many have conceded that a suitable proxy such as an index of disclosure can be used to gain insight into the sophistication of information disclosed by companies, to date, very few attempts have been made to develop such index. Of these few studies, the dimensions used to represent IFR are inconsistent among the researchers. These differences contribute to the variations in the findings and thus unable to clearly explain factors influencing the behaviour of the IFR. Therefore, this paper aims to address the issue of IFR index, by carefully reviewing existing literature relating to the topic. This issue is of particular importance to researchers since disclosure is an abstract concept that cannot be measured directly. A more comprehensive index which consists of several dimensions is hoped to assist the researchers to better explain the practices of IFR and its determinants.

Suggested Citation

  • 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.
  • Handle: RePEc:grg:01biss:v:3:y:2011:i:1:p:157-173

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    References listed on IDEAS

    1. 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.
    2. Barbara Pirchegger & Alfred Wagenhofer, 1999. "Financial information on the Internet: a survey of the homepages of Austrian companies," European Accounting Review, Taylor & Francis Journals, vol. 8(2), pages 383-395.
    3. 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.
    4. Kelton, Andrea S. & Yang, Ya-wen, 2008. "The impact of corporate governance on Internet financial reporting," Journal of Accounting and Public Policy, Elsevier, vol. 27(1), pages 62-87.
    5. Lee, Chi-Wen Jevons, 1987. "Accounting infrastructure and economic development," Journal of Accounting and Public Policy, Elsevier, vol. 6(2), pages 75-85.
    6. Zezhong Xiao & Michael John Jones & Andy Lymer, 2002. "Immediate trends in Internet reporting," European Accounting Review, Taylor & Francis Journals, vol. 11(2), pages 245-275.
    7. Williams, S. Mitchell & Ho Wern Pei, Carol-Anne, 1999. "Corporate social disclosures by listed companies on their web sites: an international comparison," The International Journal of Accounting, Elsevier, vol. 34(3), pages 389-419, August.
    8. 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.
    9. Siti Rosmaini Bt Mohd Hanafi & Mohd Ariff Bin Kasim & Muhd Kamil Bin Ibrahim & Dawson R. Hancock, 2009. "Business Reporting on the Internet: Development of a Disclosure Quality Index," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 8(1), pages 55-79, April.
    10. 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.
    11. 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.
    12. Healy, Paul M. & Palepu, Krishna G., 2001. "Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 405-440, September.
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    More about this item


    Dimension; Disclosure; Index and Internet Financial Reporting;

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General


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