Internet financial reporting determinants: a meta-analytic review

Abstract

Purpose This study aims to examine the association between firm size, profitability, leverage, auditor type and internet reporting and investigate the moderating effect of legal system, investor protection, masculinity, economic development, construction of disclosure index and measurement proxies of independent variables. Design/methodology/approach This study conducts a meta-analytic review for 59 research papers to synthesise quantitatively the results of previous literature on the determinants of internet reporting. This study uses Hunter and Schmidt’s (2004) procedures to conduct the analysis. There are three main procedures to be followed: calculating the weighted effect size, calculating observed correlation variance and sampling error variance and, finally, testing for homogeneity and moderating effects. Findings The results indicate a significant positive association between firm size, profitability, leverage, auditor type and internet reporting. The results confirm the prediction of agency theory, signalling theory, political cost hypothesis and diffusion of innovation theory. Moreover, the results show that investor protection, masculinity, economic development, construction of disclosure index and measurement proxies for independent variables moderate the association between profitability, leverage and internet reporting. Research limitations/implications This study suffers from some limitations. First, corporate governance variables such as board size, role duality and board independence were not included in the analysis due to the limited number of studies that discuss the association between corporate governance and internet reporting. Second, the study does not control for the endogeneity problem. Practical implications Future research has to consider the moderating effect of investor protection, masculinity, economic development, construction of disclosure index and measurement proxies for independent variables on the association between corporate characteristics and internet reporting. Future research can extend this work by examining the association between corporate governance, ownership structure and internet reporting. The findings regarding the determinants of internet reporting should be on concern of regulatory authorities. Originality/value This study contributes to and extends previous meta-analysis literature by examining internet reporting determinants, as previous financial reporting meta-analysis studies give no attention to internet reporting.

Corporate Ownership, Internet Penetration and Internet Financial Reporting: Evidence from the Gulf Cooperation Council Countries

“…A meta data analysis done by Mokhtar (2017) confirmed the prediction stressed by the agency theory, signalling theory, political cost hypothesis and innovation theory for explaining the IFR. Mokhtar (2017) found that other than size, there was a significant positive association between profitability, leverage, auditor type and Internet reporting. Therefore, it was recommended that studies on IFR consider these characteristics of firms as determinants for IFR practices.…”

Encouraging firms to adopt beneficial new behaviors: Lessons from a large-scale cluster-randomized field experiment

“…Our findings are directly relevant to company registrars around the world. In both developed and developing markets, registrars are seeking to become more digital and are seeking new ways to improve compliance (Debreceny, Gray & Rahman, 2002;Mokhtar, 2017). Whilst governments around the world are using behavioral science to inform policies targeted at individual citizens, much less is known about how behavioral insights can influence the actions of employees within firms.…”

Analisis Faktor-Faktor Yang Mempengaruhi Internet Financial Reporting Perusahaan Yang Terdaftar Di Jakarta Islamic Index

“…Selain itu, leverage, kepemilikan institusional, jenis industri dan profitabilitas merupakan faktor lain yang dapat mempengaruhi proses implementasi IFR. Andriyani (2017) dan Mokhtar (2017) menyatakan bahwa profitabilitas berpengaruh posiitif terhadap IFR, sehingga hasil yang diperoleh tidak sesuai dengan penelitian Chariri (2007), Agustina (2009), Hossain (2012) bahwa tidak ada hubungan secara signifikan antara profitabilitas suatu perusahaan terhadap penerapan IFR. Chariri (2007) melakukan penelitian dengan sampel perusahaaan yang terdaftar di Bursa Efek Jakarta pada tahun 2005, kecuali perusahaaan keuangan, menurutnya karena perusahaaan keuangaan memiiliki hubungan keaungan yang berbeda dengan perusahaaan lain.…”

“…Jika suatu perusahan memiliki ROA yang tinggi maka dapat dikatakan perusahaan tersebut cukup untuk memberikan informasi keuangan yang lebih banyak dan lebih mudah dalam melakukan bisnis IFR dengan menberikan informasi yang lengkap kepada investor dan membantu investor dalam mengambil keputusan investasi (Marston, 2003). Hasil penelitian ini juga didunkung oleh penelitian sebelumnya oleh Andriyani (2017) dan Mokhtar (2017) yang menemukan bahwa profitabilitas berpenggaruh positif terhadaap penggunaan IFR. Berdasarkan definisi tersebut dapat dirumuskan hipotesisnya seperti berikut : H1: Profitabilitas berpegaruh signifikan terhadap Internet Financial Reporting (IFR).…”