The Determinants Of Web-Based Investor Relations Activities By Companies Operating In Emerging Economies: The Case Of Jordan

Abstract

Using a multi-theoretical approach, this study seeks to examine the determinants of corporate web-based investor relations (IR) activities for companies listed on Amman Stock Exchange. Jordan provides an interesting context to pursue the objectives of this study because it provides insights into how listed companies are voluntarily responding to recent government and financial market regulators' initiatives to encourage the use of the internet and to keep financial market participants informed about corporate activities. A survey analysis is conducted to examine online reporting practices of Jordanian listed companies. The explanatory analysis relies on logistic, ranked and normal scores ordinary least squares (OLS) regression analyses and identifies ten explanatory variables that may affect the existence and level of web-based IR INTRODUCTIONhe Hashemite Kingdom of Jordan is a developing middle-income country with few natural resources, but a highly educated workforce. After he came to power in 1999, King Abdullah II started to promote the idea that information and communication technology (ICT) can be used as a means of development and providing an exceptional opportunity for the country to ensure a favourable place in the international economy (Al-Jaghoub and Westrup, 2003). In response, a number of major ICT based initiatives were launched with the aim of transforming the country to e-Jordan (REACH, 2000;Ciborra and Navarra, 2005). For example, the government launched new programmes such as the E-Government programme and Education Initiative which included modernising and computerising the education process.The Ministry of Information and Communication Technology (MoICT) was also established in 2002 as the governmental organisation responsible for articulating policies in the areas of information technology (IT), telecommunications, and post. The Ministry"s agenda started with the "Connecting Jordanians" vision with the aspiration of creating a knowledge-based economy and wider access to information to communities, businesses, and families across the Kingdom. 210 © 2012 The Clute InstituteIn response to these initiatives, internet usage has grown rapidly from 127,300 users in 2000, or a penetration rate of 2.4% of the population, to 1,500,500 or 23.7% of the population in 2009 [1] . This makes Jordan the sixth highest user among the Arab Middle Eastern countries. The financial market has also made information availability and transparency the first priority and, in parallel to these moves to increase the use of the internet, the government has been actively attempting to attract foreign investments to the Kingdom. This has resulted in a high level of international investment in the country so that by 2008,46.6% of the Amman Stock Exchange was owned by non-Jordanians.The presence of the internet as a unique channel for disseminating up-to-date information of any type and any format as well as the ability of the internet to make this information available for anyone who has online access, regardless ...

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

“…Some studies had reported a negative relationship between higher government agencies' ownership and website information disclosure. Other studies (Kelton & Yang, 2008;AbuGhazaleh, Qasim, & Roberts, 2012) demonstrated that there was a positive and significant relationship between government ownership and the IFR. Although the role of government ownership is substantial in the GCC countries (Al-Khouri, 2012), its impact on the IFR disclosure has not been thoroughly explored.…”

“…The GCC stock exchanges require the disclosure of ownership for each individual, corporation or government that owns 5 per cent or more (Al-Shammari, Brown, & Tarca, 2008). Following the approach used by Chahine (2007), AbuGhazaleh et al (2012) and Al-Musalli and Ku Ismail (2012), we likewise employed the aggregate proportion of ordinary shares (5 per cent or more) owned by substantial shareholders of these groups, as disclosed in the annual reports at the end of 2012.…”

“…The BIG4 was measured by using a dummy variable of one (1) if the company is audited by the BIG4 audit companies and zero (0) if otherwise. We followed the approach of previous studies such as Aly et al (2010) and AbuGhazaleh et al (2012). Empirically, the findings of prior studies (e.g., Agboola & Salawu, 2012;Momany & Pillai, 2013) looking at the relationship between audit firm and IFR practices had been mixed.…”

Information Disclosure and its Determinants on Lithuanian Companies Websites: Quantitative Approach

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Determinants of voluntary web-based disclosure: A comparison of the united kingdom and its former colony, New Zealand

“…Moreover, according to the signal theory, managers of large companies are more incited to proclaim the quality of their business to investors through voluntary disclosure. According to innovation diffusion theory, larger companies can better afford innovations and are more likely to have the necessary technological and personal resources (Flanagin, 2000; Abughazaleh et al 2012).…”