Academic journal article E+M Ekonomie a Management

Empirical Research of Users' Opinions on Selected Aspects in Internet Financial Reporting

Academic journal article E+M Ekonomie a Management

Empirical Research of Users' Opinions on Selected Aspects in Internet Financial Reporting

Article excerpt

Introduction

This paper analyzes on the perceptions of internet financial reporting (hereinafter referred to as IFR) in Malaysia. While internet financial reporting is fast and attractive becoming the standard in developed countries, but, few of previous studies have focused on this phenomenon in developing countries. In recent years internet usage have increased for dissemination of corporate information and is seen as a globalization process (Moradi et al., 2011; Gallego-Alvarez, 2011; Valentinetti & Rea, 2012). In addition, the system of economic digitalized (Shiri et al., 2013). Thus, disclosure of financial reporting represents continuing improvement over traditional methods such as paper based in terms of supplying timely data, lower cost and speed in obtaining information about corporations (Ojah & Mokoteli, 2012; Andrikopoulos et al., 2013). Moreover, paper-based annual reports are less useful now in terms of timeliness and reliability as the world is highly reliant on information and communication technologies (Ettredge et al., 2002). Internet connection has several directions in nature and very rapid in transmission and offers increased accessibility to financial and non-financial information (Bollen et al., 2008; Sanchez et al., 2011). Many companies around the world are motivated to practice IFR to meet users' needs for more timely information (Amin & Mohamed, 2016).

According to current IFR literature, evolution of IFR is the significant topic in studies. The IFR research evolution can classified in the various descriptive researches, themes, dimensions of IFR, association researches and classification of IFR. In addition; the study on IFR can categories in different types such as; descriptive study some countries, study by scholars and explanatory study. (Ali Khan, 2010). Furthermore; studies on IFR can be categorized based on first and second generation (Al-Htaybat, 2011). Although; previous studies have emphasized on IFR researches in last two decades, few of previous papers have focused and descript the relationship between attitudes and preferences of corporate annual report user and corporate behaviour particularly in developing countries such as Malaysia. As well, the success of electronic government policy in Malaysia has increased the number of companies that utilize internet financial reporting in both the public and private sectors (Abdul Aziz et al., 2011). This is because companies had realized the benefits associated with IFR (Poon et al., 2003). Firms which are adopting the internet for accounting and financial information presentation may see additional benefits over additional costs by providing financial reports through a website (Khan, 2006). In addition, the development of information technology makes a revolution in achieve information outside of around the world (Shiri et al., 2013). According to Ali Khan et al. (2013), content dimension is an important factor to influence the effectiveness of IFR as the items of IFR will help to determine the importance and usefulness of IFR in Malaysia. Also, there are several motivations in engaging IFR in Malaysia which are an increase in the transparency of disseminating company information, increased use of the internet in terms of promotion and the creation of a good brand name as well as the practise of good corporate governance (Kiew & Salleh, 2011). There are no guidelines prescribing the information on corporate websites (Ali Khan & Ismail, 2011a). Yet, there are still no mandatory guidelines and requirement for IFR disclosure in Malaysia (Hanifa & Ab. Rashid, 2005). Therefore, the aim of this study to examine the perceptions of corporate annual report users towards selected aspects of IFR in Malaysia.

The remainder of this article is organized as follows. A review of relevant literature are provided in the next section. Section two discusses the research design, followed by research findings. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.