Corporate Attributes and Internet Financial Reporting by Deposit Money Banks in Nigeria
Keywords:
Internet Financial Reporting, Firm Size, Liquidity, Profitability, Auditor Type.
Abstract
The advent of the internet has brought succor not just to the way businesses around the world are being conducted but also to the way corporations disseminate information to stakeholders. This study assesses the relationship between corporate attributes and internet financial reporting (IFR) practice by quoted Deposit Money Banks (DMBs) in Nigeria. The study used ex-post facto research design. The population of the study comprises of the 15 banks quoted on the first-tier securities market of the Nigerian Stock Exchange as at the December 2015 and these constitute the sample of the study. Web search engines were used to establish internet presence of each bank and the study used IFR Disclosure as proxy for IFR. Corporate attributes (size, liquidity, auditor type and profitability) were regressed against the IFR disclosure index to examine the extent to which they determine IFR. Results show that the relationship between IFR and bank size, bank liquidity is positive and statistically significant which implies that IFR practice is determined by size and liquidity of DMBs. The study noted that IFR is still a voluntary practice that is yet to be regulated. It therefore recommends that IFR should be encouraged and regulated to improve information disclosure and dissemination to wider stakeholders and users of financial reports.
References
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Agboola, A. A., & Salawu, M. K. (2012). The determinants of internet financial reporting: Empirical evidence from Nigeria. Research Journal of Finance and Accounting. 3(11).
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Aqel, S. (2014). The determinants of financial reporting on the internet: The case of companies listed in the Istanbul Stock Exchange. Research Journal of Finance and Accounting 5(8) ,139-149
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Basuony, M.A.K & Mohamed, E.K.A. (2014). Determinants of internet financial disclosure in GCC Countries. Asian Journal of Finance & Accounting. 6(1),70-89
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Bonson, E., & Escobar, T. (2006). Digital reporting in Eastern Europe: An empirical study. International Journal of Accounting Information System. 7, 299-318.
Botosan, C. & Marlene, P. (2002). A Re-examination of disclosure level and the expected cost of equity capital. Journal of Accounting Research 40, 21-41.
Boubaker, S., Lakhal, F.,, & Nekhili, M. (2012). The determinants of web-based corporate reporting in France. Managerial Auditing Journal, 27(2), 126– 155.
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Cheng, A, Lawrence, S. & Coy, D. (2000). Measuring the quality of corporate financial website: A New Zealand study. Being a paper presented at the 12th Asian Pacific conference on International Accounting Issues, Beijing.
Cooke, T. E. (1989). Disclosure in the corporate annual reports of Swedish companies. Accounting and BusinessResearch, 19 (74), 113-124.
DeAngelo, L.E. (1981). Auditor size and audit quality. Journal of Accounting and Economics, 3,183-199.
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Diamond, D. W. & Verrecchia R. E. (1991). Disclosure, liquidity, and the cost of capital, Journal of Finance 46, 1325-1359.
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Hossain M., Momin M.A & Leo, S. (2012). Internet financial reporting and disclosure by listed companies: Further evidence from an emerging country. Corporate Ownership and Control, 9(4), 350-366.
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Larran, M. & Giner, B. (2002). The use of the internet for corporate reporting by Spanish companies, The International Journal of Digital Accounting Research,2 (3),53-82.
Marston, C. & Polei, A. (2004) Corporate reporting on the Internet by German companies. International Journal of Accounting Information Systems, 5 (3), 285-311.
Marston, C. (2003). Financial reporting on the Internet by leading Japanese companies. Corporate Communications, 8 (1), 23-34.
Matundura, C. L. (2011). Determinants of internet financial reporting in Kenya: evidence from companies quoted at the Nairobi stock exchange. Unpublished MBA Research Project, University of Nairobi.
OECD (2004). OECD Principles of Corporate Governance. Paris Organization for Economic Cooperative Development.
Oyelere P, Laswad F, & Fisher R (2003). Determinants of Internet Financial Reporting by New Zealand Companies. Journal of International Financial Management and Accounting. 14(1),26-61.
Saudagaran, S. M. & Diga, J. (1997). Financial reporting in emerging capital markets: Characteristics and policy issues. Accounting Horizons 11, 41-64.
Singhvi, S.S.& Desai, H.B. ( 1971). An empirical analysis of the quality of corporate financial disclosure. The Accounting Review, 46 (1), 129-138.
Sriram, R.S. & Laksmana, I. (2006), Corporate web site reports: some evidence on relevance and usefulness, Information Resources Management Journal, 19,1-17.
Umoren, A. O. & Asogwa, I.E. (2013). Internet financial reporting and company characteristics: acase of quoted companies in Nigeria .Research Journal of Finance and Accounting,4, No.12, 72-80
Wallace, R., Naser, K., & Mora, A. (1994). The relationship between the comprehensiveness of corporate annual reports and firm characteristics in Spain. Accounting, & Business Research, 25(97), 41-53.
Wallace, R.S.O & Naser, K. (1995). Firm-specific determinants of the comprehensiveness of mandatory disclosure in the corporate annual reports of firms listed on the Stock Exchange of Hong Kong. Journal of Accounting and Public Policy, 14, 311-368.
Xiao, J. Z., Yang, H. & Chow, C. W.(2004). The determinants and characteristics of voluntary Internet-based disclosures by listed Chinese companies. Journal of Accounting and Public Policy, Vol. 23 (2), 191-225.
Agboola, A. A., & Salawu, M. K. (2012). The determinants of internet financial reporting: Empirical evidence from Nigeria. Research Journal of Finance and Accounting. 3(11).
Aly, D., Simon J., & Hussainey, K. (2010). Determinants of corporate internet reporting. Managerial Auditing Journal. 25(2), 183-202.
Aly, D., Simon, J., & Hussainey, K. (2010). Determinants of corporate internet reporting: evidence from Egypt. Managerial Auditing Journal, 25(2), 182- 202.
Aqel, S. (2014). The determinants of financial reporting on the internet: The case of companies listed in the Istanbul Stock Exchange. Research Journal of Finance and Accounting 5(8) ,139-149
Ashbaugh, H., Johnstone, K. & Warfield, T. (1999). Corporate Reporting on the internet. Accounting Horizons, September, 241-257.
Basuony, M.A.K & Mohamed, E.K.A. (2014). Determinants of internet financial disclosure in GCC Countries. Asian Journal of Finance & Accounting. 6(1),70-89
Bonson, E. & Escobar, T. (2002). A survey on voluntary disclosure on the internet: empirical evidence from 300 European Union companies, International Journal of Accounting Research, 2 ,27-51.
Bonson, E., & Escobar, T. (2006). Digital reporting in Eastern Europe: An empirical study. International Journal of Accounting Information System. 7, 299-318.
Botosan, C. & Marlene, P. (2002). A Re-examination of disclosure level and the expected cost of equity capital. Journal of Accounting Research 40, 21-41.
Boubaker, S., Lakhal, F.,, & Nekhili, M. (2012). The determinants of web-based corporate reporting in France. Managerial Auditing Journal, 27(2), 126– 155.
Budisusetyo, S. & Luciana .S. A. (2008) .Corporate internet reporting of banking industry and LQ45 Firms: An Indonesia example” Retrieved from www.ssrn.com on 6th May 2014
Burrus, D. (1997). Designing your future. Journal of Lending and Credit Risk Management,80, 37-39
Cheng, A, Lawrence, S. & Coy, D. (2000). Measuring the quality of corporate financial website: A New Zealand study. Being a paper presented at the 12th Asian Pacific conference on International Accounting Issues, Beijing.
Cooke, T. E. (1989). Disclosure in the corporate annual reports of Swedish companies. Accounting and BusinessResearch, 19 (74), 113-124.
DeAngelo, L.E. (1981). Auditor size and audit quality. Journal of Accounting and Economics, 3,183-199.
Debrecency, R., Gray, G.L., & Rahman, A.(2002): The determinants of internet financial reporting, Journal Accounting and Public Policy, 21, 371-394.
Debreceny, R., Gray, G. & Rahman, A. (2002). The determinants of Internet financial reporting". Journal of Accounting and Public Policy, 21 (3),371- 394.
Diamond, D. W. & Verrecchia R. E. (1991). Disclosure, liquidity, and the cost of capital, Journal of Finance 46, 1325-1359.
Ezat, A. & El-Masry, A. (2008). The impact of corporate governance on the timeliness of corporate internet reporting by Egyptian listed companies, Managerial Finance, 34(12), 848-867.
Haniffa, R.M & Cooke, T.E. (2002). Culture, corporate governance and disclosure in Malaysian corporations. Abacus, 38 (3), 317-349.
Healy, P.M., A.P. Hutton, & K. G. Palepu. (1999) Stock performance and intermediation changes surrounding sustained increases in disclosure. Contemporary Accounting Research 16(3),485-520.
Hossain M., Momin M.A & Leo, S. (2012). Internet financial reporting and disclosure by listed companies: Further evidence from an emerging country. Corporate Ownership and Control, 9(4), 350-366.
Hossain, M., Perera, M., & Rahman, A. (1995). Voluntary disclosure in the annual reports of New Zealand companies. Journal of International Financial Management, & Accounting,6(1), 69-87.
Jenson, M.C & Meckling, W. H. (1976). Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3
(4), 305-360.
Kaplan, M. (1996) Market Voluntary Plans via the world wide web. National Underwriter, 100, 8-9
Kemala, A. & Verawaty, J. (2015). The accessibility determinants of internet financial reporting of manufacture company listed in Indonesia stock exchange . Asian Economic and Financial Review, 5(2),229-238
Kwakye, T. O., Aboagye-Otchere, F. & Bekoe, R. A. (2013). Internet financial reporting practices of Ghanaian listed firms. Retrieved from http://ugspace.ug.edu.gh/handle/123456789/4557
Lai, S., Lin, C., Lee., & Wu, F.H..(2007). An empirical study of the impact of internet financial reporting on stock prices. Available at SSRN: https://ssrn.com/abstract=1014140
Larran, M. & Giner, B. (2002). The use of the internet for corporate reporting by Spanish companies, The International Journal of Digital Accounting Research,2 (3),53-82.
Marston, C. & Polei, A. (2004) Corporate reporting on the Internet by German companies. International Journal of Accounting Information Systems, 5 (3), 285-311.
Marston, C. (2003). Financial reporting on the Internet by leading Japanese companies. Corporate Communications, 8 (1), 23-34.
Matundura, C. L. (2011). Determinants of internet financial reporting in Kenya: evidence from companies quoted at the Nairobi stock exchange. Unpublished MBA Research Project, University of Nairobi.
OECD (2004). OECD Principles of Corporate Governance. Paris Organization for Economic Cooperative Development.
Oyelere P, Laswad F, & Fisher R (2003). Determinants of Internet Financial Reporting by New Zealand Companies. Journal of International Financial Management and Accounting. 14(1),26-61.
Saudagaran, S. M. & Diga, J. (1997). Financial reporting in emerging capital markets: Characteristics and policy issues. Accounting Horizons 11, 41-64.
Singhvi, S.S.& Desai, H.B. ( 1971). An empirical analysis of the quality of corporate financial disclosure. The Accounting Review, 46 (1), 129-138.
Sriram, R.S. & Laksmana, I. (2006), Corporate web site reports: some evidence on relevance and usefulness, Information Resources Management Journal, 19,1-17.
Umoren, A. O. & Asogwa, I.E. (2013). Internet financial reporting and company characteristics: acase of quoted companies in Nigeria .Research Journal of Finance and Accounting,4, No.12, 72-80
Wallace, R., Naser, K., & Mora, A. (1994). The relationship between the comprehensiveness of corporate annual reports and firm characteristics in Spain. Accounting, & Business Research, 25(97), 41-53.
Wallace, R.S.O & Naser, K. (1995). Firm-specific determinants of the comprehensiveness of mandatory disclosure in the corporate annual reports of firms listed on the Stock Exchange of Hong Kong. Journal of Accounting and Public Policy, 14, 311-368.
Xiao, J. Z., Yang, H. & Chow, C. W.(2004). The determinants and characteristics of voluntary Internet-based disclosures by listed Chinese companies. Journal of Accounting and Public Policy, Vol. 23 (2), 191-225.
Published
2019-06-25
Section
Articles
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