Internet financial reporting: An examination of current practice

Pendley, John A.; Rai, Atul

doi:10.1057/jdg.2008.26

Cited by 14 publications

(6 citation statements)

References 16 publications

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“…In addition, we show that design features also impact perceived investment quality and attractiveness. Taken together, these results suggest that the design and maintenance of a website is a vital factor in maintaining the credibility of financial information, and this justifies the recent trend of public companies utilizing IR professionals and IR outsourcing services to manage IR websites (Pendley and Rai, 2009).…”

Section: Discussionmentioning

confidence: 68%

The impact of website design on the perceived credibility of internet financial reporting

Allport

Pendley

2010

Intelligent Systems in Accounting, Finance and Management

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Marketing and information systems research show that surface features of a website can induce credibility effects. We conduct an experiment to examine the question of credibility effects induced by the surface features of webbased fi nancial reporting. We predict that participants will perceive fi nancial data from sites with surface fl aws (poor style and incompleteness) to be of lower credibility. Consistent with our expectations, we fi nd that surface features can signifi cantly affect users' perceptions of the credibility of fi nancial information. We present further analyses showing that website surface features also impact investment attractiveness, suggesting that website characteristics may adversely affect investor perceptions.were in the incorrect direction more than one item beyond the neutral point they were excluded from the analysis. Ten participants were deleted for failing the manipulation checks. The Dependent MeasuresInformation credibility was measured with three questions related to the representational faithfulness, the credibility and the reliability of the information on the website. The questions were adapted from similar questions posed by Hodge (2001) andMercer (2005). The three questions used to measure credibility are:1. The information provided on the site faithfully represents the actual fi nancial condition of AIP. 2. The information of the website was credible and believable. 3. The information was reliable. 136

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Section: Discussionmentioning

confidence: 68%

The impact of website design on the perceived credibility of internet financial reporting

Allport

Pendley

2010

Intelligent Systems in Accounting, Finance and Management

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“…Bonson and Flores, 2011;Boubaker et al, 2011) and processable information format such as XBRL (e.g. Henchiri, 2011;Pendley and Rai, 2009). The results of this emerging stream of CIR research suggest that companies are still in the very preliminary stages of integrating these technologies into their overall communication strategy.…”

Section: 1mentioning

confidence: 99%

Comprehensiveness of internet reporting by Caribbean companies

Bowrin

2015

Journal of Accounting in Emerging Economies

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Purpose – The purpose of this paper is to examine the comprehensiveness and determinants of internet reporting by publicly listed Caribbean companies. Design/methodology/approach – In total, 65 companies with common shares listed on one of the four Caribbean stock exchanges, were included in the study. The study examined the relationship between firm characteristics (size, industry affiliation, listing status, and CEO role duality) and the comprehensiveness of corporate internet reporting (CIR), while controlling for the importance of public equity financing, company age and profitability. CIR was measured using an unweighted 107-item disclosure index that focussed on web site usability, disclosure timeliness, disclosure content, and several advanced CIR features. The data were subjected to content analysis using descriptive statistics, contingency tables, and multiple regression analysis. Findings – As a whole, publicly listed Caribbean firms seem to be in stage 2 of the internet evolutionary model presented by Hedlin (1999); most firms have a web presence, a majority of firms engage in CIR and very few firms are using social media, communication and processable reporting formats in their CIR. It was found that Caribbean companies, on average, satisfied only 63.1 percent of the items included in the index. As hypothesized company size and industry affiliation were positively related to the comprehensiveness of CIR. Conversely, both industry affiliation and listing status generated mixed results. Also, the importance of public equity financing was significantly and negatively related to the general content and timeliness dimensions of CIR. Practical implications – The findings suggest that Caribbean governments and regulators interested in raising the profile of regional stock exchanges may need to implement incentives for public companies to engage in internet reporting. Originality/value – This is the first study to examine the comprehensiveness and determinants of internet reporting by publicly listed Caribbean companies.

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“…studies examine the extent of financial information made available by companies in different settings (Bonson and Flores, 2011;Caba Perez et al, 2008;Gandia, 2008;Gutierrez-Nieto et al, 2008;Pendley and Rai, 2009), this is a clear research opportunity that needs to be taken up in order to provide an exhaustive view on how businesses and stakeholders[2] interact through the internet.…”

Section: Corporate Financial Communicationmentioning

confidence: 99%

“…Some significant factors that might feed this plausibly negative scenario are: the expansion of online audiences interested in companies' financial information; the users' perceptions of self-confidence and sense of control commonly associated with the cognitive processing of information in a computer-mediated context (Csikszentmihalyi, 1990;Hoffman and Novak, 1996;Rafaeli, 1988), which would strengthen their trust in the online information source regardless of other issues; and the existence of many inexperienced[1] online investors who decline to use professional brokers and do studies examine the extent of financial information made available by companies in different settings (Bonson and Flores, 2011;Caba Perez et al, 2008;Gandia, 2008;Gutierrez-Nieto et al, 2008;Pendley and Rai, 2009), this is a clear research opportunity that needs to be taken up in order to provide an exhaustive view on how businesses and stakeholders [2] interact through the internet.…”

Section: Introductionmentioning

confidence: 99%

Corporate financial communication and the internet: manipulating investor audiences?

Guillamón‐Saorín

Martínez–López

2013

Online Information Review

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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

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Internet financial reporting: An examination of current practice

Cited by 14 publications

References 16 publications

The impact of website design on the perceived credibility of internet financial reporting

The impact of website design on the perceived credibility of internet financial reporting

Comprehensiveness of internet reporting by Caribbean companies

Corporate financial communication and the internet: manipulating investor audiences?

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