Internet Financial Reporting (IFR) Disclosure Position and Firm Value

Keliwon, Kamarul Baraini; Shukor, Zaleha Abdul; Hassan, Mohamat Sabri

doi:10.17576/ajag-2018-09-10

Cited by 16 publications

(20 citation statements)

References 56 publications

(77 reference statements)

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“…Therefore, this study aims to measure the level of disclosure through OFD, which is a voluntary disclosure tool. Keliwon et al (2018) differentiate between OFD and the traditional reporting methods in terms of the methodology of reporting firms' performance. OFD disclosure consider all information that could promote the performance of firms through the internet platform, including financial and non-financial information, apart from the annual reports.…”

Section: Literature Review 21 Context Of the Studymentioning

confidence: 99%

The relationship between the extent of online financial disclosure and profitability of Islamic banks

Al-Sartawi

Reyad

2019

JFRA

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Purpose This study aims to examine the relationship between online financial disclosure (OFD) and profitability of Islamic banks in the Gulf Cooperation Council (GCC) countries. Design/methodology/approach An extensive review of the literature was carried out and a checklist of 90 items (71 for content and 19 for presentation) was adopted to measure the level of OFD for the Islamic banks that are listed on the GCC stock exchanges. Additionally, the study used three indicators to measure profitability, namely, return on equity, return on assets and earnings per share. Findings The findings show that the overall OFD by Islamic banks in the GCC is 72.5 per cent, and a negative and insignificant relationship between OFD and profitability. Practical implications The study recommends that regulatory bodies should develop a guideline of disclosing information through the internet to enhance the transparency and performance among Islamic banks, which leads to reasonable economic decision-making. Originality/value The study contributes to the financial reporting and the Islamic economy literature relating to the GCC countries as previous studies gave no attention to Islamic banks.

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Section: Literature Review 21 Context Of the Studymentioning

confidence: 99%

The relationship between the extent of online financial disclosure and profitability of Islamic banks

Al-Sartawi

Reyad

2019

JFRA

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“…These advantages have encouraged conducting investment activities and may motivate improving the IFR regulations (Shan and Troshani, 2020). Therefore, disclosing a company’s performance to stakeholders via IFR is the appropriate worldwide way (Keliwon et al , 2018).…”

Section: Introductionmentioning

confidence: 99%

The impact of internet financial reporting on Egyptian company’s performance

Hussein

Nounou²

2021

JFRA

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Purpose This study aims to examine the impact of internet financial reporting (IFR) on companies’ performances as measured by three performance indicators, namely, stock price, stock returns and company value. Design/methodology/approach A sample of 139 non-financial companies listed in the Egyptian stock exchange is used and classified as 108 IFR companies and 31 non-IFR companies. To test the research hypotheses, an independent t-test and multiple linear regression analyses are used. Findings The results indicate that there are no significant differences between IFR companies and non-IFR companies for both stock price and stock return variables. Conversely, there is a significant difference between IFR companies and non-IFR companies in the company value variable. These results imply rejecting hypotheses H1 and H4 and accepting the hypothesis of H7 that the presence of IFR has an impact on company value. The multiple regression analyses results indicate a significant relation between the scope of IFR and stock price. Likewise, between the degree of IFR and company value. Both degree and scope of IFR have an insignificant impact on stock return, which infer that applying different performance measures can reveal different conclusions. Research limitations/implications This research is a snapshot of IFR limited to a cross-sectional study and could not study the longitudinal data of internet reporting. Second, Marston and Polei (2004) contend that “weights contain an element of subjectivity, which cannot be completely avoided in the composition of such a score” (p. 297) and a variation in the disclosure index can lead to a modification in the results (Kaur and Kaur, 2020). This research applied a weighted index to measure the degree of IFR, which may affect the results and may change it if other indexes are applied. Moreover, the scores of the degree and scope of information disclosure are assumed to be similar every year due to the lack of information regarding the variations in content and presentation in the companies’ websites. Finally, the absence of a complete data set and stock prices for some companies in the sample. Practical implications To enhance the quantity and quality of IFR could be implemented through setting regulations and standards to govern IFR practices companies in Egypt. Moreover, the trade-off of the requirement of the Egyptian Financial Supervisory Authority for Egyptian companies make information available online and the secrecy culture profound in the Egyptian society (Ahmed et al., 2015) involve assigning a regulatory body for monitoring the IFR practices to ensure disseminating timely and accurate information that helps investors make rational decisions. Social implications The researchers recommend the suggestion to have an external assurance conducted by external auditors to enhance the accuracy and credibility of the IFR information. Originality/value Based on prior literature, no studies in Egypt compare between IFR companies and non-IFR companies concerning stock price and company value as measured by Tobin’s Q. Moreover, few research studies in Egypt covered the degree of IFR disclosure whilst not addressing the impact on the stock price. In addition, no prior study examined the scope of IFR disclosure in Egypt. Therefore, the research findings attribute to literature.

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“…Using IFR also improves the integrity of financial data, which is critical for market efficiency (Haistron & Brooks, 2019). The increased usage of IFR to communicate with shareholders has reduced printed-based financial reporting since IFR attracts more potential investors (Almilia, 2009;Keliwon et al, 2018).…”

Section: Discussionmentioning

confidence: 99%

“…As the global economy is undergoing a rapid digital transition, Internet Financial Reporting (IFR) has become the focal point for practitioners and researchers, structuring new principles on how companies function and communicate with their stakeholders (Ahmed, 2017;Cassar et al, 2019). The studies of Lymer et al (1999); Keliwon (2018) document that the application of IFR requires the use of technology, bolstered by internet-based communications and web resources, including multimedia, to disseminate financial reporting to investors, aiding them in their investment decision-making. Numerous studies have identified several advantages that can be obtained via the use of IFR.…”

Section: Introductionmentioning

confidence: 99%

“…Meanwhile, according to (Haistron & Brooks, 2019), the employment of IFR also enhances the integrity of financial data, which is vital to maintaining market efficiency. The growing adoption of IFR to communicate with shareholders has also reduced printed-based financial reporting because IFR provides greater benefits to accommodate investors, especially in delivering real-time information (Almilia, 2009;Keliwon et al, 2018). On the other hand, there are also several drawbacks implicating the use of IFR.…”

Section: Introductionmentioning

confidence: 99%

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Mapping Internet Financial Reporting: A Bibliometric Review

Bosi¹,

Lajuni²,

Khan³

2021

IJARAFMS

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Internet financial reporting (IFR) has become the center of discussion among practitioners and researchers as the global economy is undergoing a rapid digital transformation, which structures the new concepts in how businesses operate and interact with their stakeholders. Despite the rapid transformation, studies concerning the bibliometric review on IFR are still considered scarce in this so-called "digital era". Thus, the objective of this study is to perform bibliometric analysis on scientific literature published in the field of IFR, particularly from the years 1998 to 2020. The Scopus database was used to gather all the related literature on IFR. Apart from employing SPSS and Microsoft Excel software, we also utilize Publish or Perish software to integrate the data and perform simple analysis before using VOSviewer to perform data visualization. Publication growth, the productivity of research, and citation analysis were reported via standard bibliometric analysis. A total of 96 documents were retrieved based on the keyword search results. The study reveals that the vast majority of articles were written in English and published in journals and conferences. Most of these articles were in the business, management, and accounting fields. The findings of the study also point to future research, whereby the search query should be expanded to other accessible databases, including but not limited to the Web of Science, Google Scholar, and Dimensions, which would possibly contribute to more invaluable results.

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Internet Financial Reporting (IFR) Disclosure Position and Firm Value

Cited by 16 publications

References 56 publications

The relationship between the extent of online financial disclosure and profitability of Islamic banks

The relationship between the extent of online financial disclosure and profitability of Islamic banks

The impact of internet financial reporting on Egyptian company’s performance

Mapping Internet Financial Reporting: A Bibliometric Review

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