Corporate financial communication and the internet: manipulating investor audiences?

Abstract

Purpose -The aim of this paper is to contribute to the understanding of how the internet interacts with businesses and markets. The authors aims to focus on the internet press releases of annual results to illustrate how corporate communication is used and managed strategically online. Design/methodology/approach -The authors describe the increasing importance of the internet for communicating firms' performance to investors, financial media and the stock market, then identify and discuss a number of techniques that might be used to potentially manipulate the online presentation of financial results. Thus the authors conducted a content analysis of the internet press releases in two consecutive years (2008 and 2009) by a wide range of companies listed in the IBEX 35 share index.Findings -This paper provides in-depth insights into content analysis techniques by providing examples of how potentially misleading disclosure practices are included in press releases. Moreover the paper investigates the use of seven potentially misleading disclosure practices appearing in press releases that optimise the way in which company results are presented. Practical implications -Regulators may consider the normalisation of the content of internet press releases to avoid or reduce opportunistic disclosure practices. Moreover, investors should be aware of the use of these practices to reduce the misleading effect when processing corporate information. Originality/value -This pioneering study analyses and provides evidence of potentially misleading internet-based disclosure strategies. Furthermore the paper proposes a set of measures for corporate information presentation. their trading (i.e. placing stock market orders) directly (Barber and Odean, 2001). These factors are expected to considerably increase the novice investors' risk of basing their decision-making processes on low-quality online information (Barber and Odean, 2001). The investors' ability to make informed choices can be undermined by relying on information shortcuts such as the limited content provided by headlines or other framed sections of financial information disclosures, such as subheadings and bullet points (Zillmann et al., 2004).Among the new business opportunities that the internet offers firms, research has primarily focused on marketing communication, e-commerce and the knowledge economy. However, despite its importance, many aspects of internet-based corporate financial communication have not been sufficiently investigated. Although a few Corporate financial communication OIR 37,4 532

Integrated Reporting in an Internet and Social Media Communication Environment: Conceptual Insights

“…The use of the Internet for financial (Lodhia et al. ; Kelton and Pennington ; Ojah and Mokoaleli‐Mokoteli ; Guillamón‐Saorín and Martínez‐López ) and sustainability reporting (Adams and Frost ; Cho and Roberts ; Hahn and Kühnen ; Junior et al. ; Lodhia ) has been studied at length.…”

“…The use of the Internet for financial Kelton and Pennington 2012;Ojah and Mokoaleli-Mokoteli 2012;Guillamón-Saorín and Martínez-López 2013) and sustainability reporting (Adams and Frost 2004;Cho and Roberts 2010;Hahn and Kühnen 2013;Junior et al 2014;Lodhia 2014) has been studied at length. While integrated reporting through web-based technologies draws upon the features of Internet financial and sustainability reporting, the guiding principles issued by the IIRC (2013) highlight integrated reporting's distinctive characteristics.…”

Kualitas Corporate Internet Reporting Di Indonesia Dan Malaysia

“…Hasil tersebut sesuai dengan penelitian Khan (2015), Tang, Eller, & Wier (2016), dan Yusuf (2013) yang menjelaskan jika umur terdaftar perusahaan tidak memiliki pengaruh ketetapan waktu CIR. Namun, penelitian ini bertolak belakang dengan temuan beberapa peneliti (Botti, Boubaker, Hamrouni, & Solonandrasana, 2014;Dolinšek & Lutar-Skerbinjek, 2018;Guillamón Saorín & Martínez López, 2013). Mereka justru menemukan hasil yang sebaliknya.…”

CSR Communication: The Use of Internet-Based Tools

“…Many scholars provided evidence of a diffuse use of the website for CSR disclosure by companies (Adams & Frost, 2006;Bartkus et al, 2002;Esrock & Leichty, 1998;Maier & Ravazzani, 2019;Moreno & Capriotti, 2009;Siano et al, 2016;Tagesson et al, 2009;Tetrevova et al, 2019;Wanderley et al, 2008;Williams & Wern Pei, 1999). Several researches focused on the on-line reports published by companies (Correa-Garcia et al, 2018;Guillamón-Saorín & Martínez-López, 2013;Hahn & Kühnen, 2013;Jose & Lee, 2007;Junior et al 2014;Lodhia, 2014;Lodhia & Stone, 2017). A part of the literature underlined the internet potential to establish a two-way communication and foster a dialogue with stakeholders on CSR topics (Esrock, & Leichty, 1998;Unerman, & Bennett, 2004).…”

“…□ Several studies paid attention on the use of the internet for financial reporting (Guillamón-Saorín & Martínez-López, 2013), sustainability reporting (Hahn & Kühnen, 2013;Junior et al 2014;Lodhia, 2014) or integrated reporting (Lodhia & Stone, 2017). Finally, some authors highlighted that sophisticated Internet-based tools as two-way organization-stakeholder communications were not being harnessed (Guthrie et al, 2008; and, at the same time, a limited use of internet by companies on disseminating CSR topics (Adams & Frost, 2006;Maier & Ravazzani, 2018;Moreno & Capriotti, 2009;Wheeler & Elkington, 2001).…”