Information Technology Governance and Electronic Financial Disclosure

Abstract

This study set out to link two fundamental topics of corporate governance: Information technology governance (ITG) and the level of electronic financial disclosure (EFD). The paper aimed to examine the extent of ITG in the UAE listed firms, the level of EFD by UAE listed firms and the association between the two variables. The researchers collected data from a sample of 103 firms listed in the financial stock markets of the UAE for the years 2016-2017. A regression analysis was used to test the relationship between the dependent and independent variables. Consequently, the study found a positive and significant relationship between ITG and EFD. From a practical perspective, this paper is aimed at the board of directors and executive managers, as IT governance is their responsibility. Furthermore, from a theoretical perspective, this paper offers a unique point of view, which adds to the literature review discussing IT governance mechanisms, and EFD. The study would also be of interest to the international investment community, regulators, policy makers and governments in the UAE, the Middle East as well as the other GCC countries.

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“…Companies should also discuss new and emerging technologies that can create future value while being realistic about implementation barriers to maintain credibility. Increased transparency regarding IT strategies, investments, and results through such disclosures can boost investor confidence, market valuation, and access to capital (Al-Sartawi et al, 2018). With technology's critical enterprise role, clearly articulating IT's value contribution through reporting is imperative (Debreceny, 2013).…”

“…According to the Signalling Theory, superior-quality businesses will provide more pertinent and superior information to raise capital (Al-Sartawi et al, 2018). As a result, the disclosure of IT Governance-related information is now demanded, given that IT is the principal instrument organizations utilize to manage business processes (Weli, 2020).…”

Application of Information Technology in Optimizing the Governance of Basic Education Groups

“…In the governance structure of enterprises, the board members' understanding and mastery of IT knowledge and skills is very important for the management of the enterprises [7]. Al-Sartawi et al studied the relationship between information technology and the corporate governance performance of listed companies and found out that there's a significant positive correlation between the two [8]. Juhandi et al pointed out in their research that, information technology can generate new innovations and creativity; due to the incomplete corporate governance of enterprises in Indonesia and other developing countries, the management level of these enterprises could not reach the optimal status, and the solution is to exert the role of information technology to the greatest extent [9].…”