Sophistication of internet corporate reporting and its impact on corporate performance of listed corporations in Indonesia
In the current digital economy, internet corporate reporting is a competitive necessity for the survival of corporations. Internet corporate reporting facilitates information dissemination to not only the shareholders but also to other stakeholders to reduce information asymmetry. However, not al...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
2018
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/84161/1/GSM%202019%2026%20-%20IR.pdf |
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| Summary: | In the current digital economy, internet corporate reporting is a competitive
necessity for the survival of corporations. Internet corporate reporting facilitates
information dissemination to not only the shareholders but also to other
stakeholders to reduce information asymmetry. However, not all corporations
adopt internet financial reporting. This study aims to contribute to corporate
reporting literature by investigating the technological-organizationalenvironmental
related factors that affect the adoption of sophisticated internet
corporate reporting, and its effect on corporate performance. Moreover, the
innovative use of the internet to disseminate financial and non-financial
information promotes corporate transparency through more timely and relevant
information disclosures to meet the information needs of the corporation’s
shareholders and numerous other stakeholders.
Primary data were collected from corporations listed on the Indonesia Stock
Exchange in 2014 by using questionnaires distributed via mail, e-mail, and
web-based survey, while secondary data were collected from corporate annual
reports and websites. The structural model based on 74 responses was tested
using the partial least square.
The empirical findings show that the extent of sophistication of internet
corporate reporting is influenced by perceived benefits, ownership
concentration, stakeholder orientation, and corporate size. This study carries
contributions for the CEOs who should concentrate on the factors relevant to
adoption. In addition, this study provides empirical evidence that the
sophisticated internet corporate reporting has a positive impact on corporate
performance. Furthermore, the relationship between sophisticated internet
corporate reporting and corporate performance is mediated by corporate
transparency. Consequently, this should motivate the CEOs to adopt a high
level of sophisticated internet corporate reporting in order to enhance their
corporate transparency and subsequently to enhance corporate performance. |
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