Internet Financial Reporting, Financial Development, and the Cost of Equity Capital: Evidence from Indonesia

Abstract

The purpose of this research is to examine effect of direct and indirect consequences of internet financial reporting, earning power, and investment opportunity set in cost of equity capital as well as through earnings management as a mediating variable. The data used in this research from Indonesia Stock Exchange and analyzed using partial least square.The results of this research can contribute in minimizing capital costs by conducting financial reporting through website to develop business and avoid earnings management practices.

The Impact of Financial Development on the Cost of Capital: Evidence from Pakistan

“…Moreover, Wati et al (2019) collected data from Indonesia and focused on the internet, and financial learning as game changers for financial development. The purpose of the research was to find out the effect of financial reports available online and opportunities available for investment at the cost of equity capital.…”