An Empirical Investigation of Selected Aspects on Internet Financial Reporting in Malaysia

Abstract

In this study an attempt is made to provide empirical evidence on the perception of Malaysian preparers and users of corporate annual reports about selected aspects of internet financial reporting (IFR). The perception of preparers and users of corporate annual reports were solicited using a survey mailed questionnaire. The findings of this study suggested three main benefits to companies that engage in IFR are attract foreign investors, promote company wider to the public, and provide wider coverage. The findings also revealed that three main benefits to the users who collect financial information of companies via their website are increases timeliness and efficiency in obtaining financial information, makes investment decision process easier and faster, and provides information for company inexpensively. The outcome of the analysis revealed that three main factors that are perceived as important by responding firms to engage in IFR are enhance corporate image, company teller with the technology development, and competitors in the industry. The findings also suggested three factors that inhibit firms from engaging in IFR are need to keep information update to be of use, required expertise from the company, and concern over security of information. Another important result revealed that global reach and mass communication as the most important advantages from financial reporting on the Internet. Moreover, security problems are the disadvantages of placing financial information on the Internet. Finally, plausible implications of the findings of the study are then presented and areas for future research are also proposed. This study is one of the first empirical studies of the selected aspects of IFR in Malaysia. Taken together, these research outcomes make an incremental contribution to the existing literature by providing useful insights into our knowledge of IFR especially for emerging markets like Malaysia.