The Extent and Forms of Voluntary Disclosure of Financial Information on Internet in Nigeria: An Exploratory Study

Abstract

This study determined the extent and form of internet financial reporting by quoted companies in Nigeria. The study employed secondary data. One hundred and fifty-five financial and non-financial firms quoted on the Nigerian Stock Exchange (NSE) were purposively selected for analysis. These comprise 49 financial firms and 106 non-financial firms between 2009 and 2010. Data relating to financial reporting on the internet were obtained from the websites of the sampled companies. Content and descriptive analyses were employed to analyse data. Findings revealed that 139 companies which constitute 90% of the listed companies have websites while 16 (10%) have no website. Ninety-eight percent of the financial sector comprising of Banking, Insurance, Mortgage and other Financial Institutions have websites. Out of the total of the 139 companies with website, only 77 (55%) disclosed financial information on their web pages while the remaining 62 (45%) did not. The study recommends that Government and stock market regulators should put in place regulatory framework for internet financial reporting and companies should release both the online report and hard copy promptly

Relato Financeiro Eletrónico: As Necessidades dos Utilizadores no Caso Angolano

“…Estudos que caracterizam a realidade de um determinado país (Salawu, 2013); (Pervan, 2005); (Silva & Filho, 2005); (Barak, 2004); (Marston & Polei, 2004); (Xiao, Yang, & Chow, 2004); (Larran & Giner, 2002); (Marston, 2003); (Pérez & Delgado, 2002); (Silva & Quaresma, 2001); (Craven & Marston, 1999); (Hedlin, 1999) Estudos que fazem algum tipo de comparação entre empresas ou países (Alves, 2005); (Barak, 2004); (Marston & Polei, 2004); (Geerings, Bollen, & Hassink, 2003); (Craven & Marston, 1999); (Deller, Stubenrath, & Goethe, 1999); (Pirchegger & Wagenhofer, 1999); (Westarp, Dieter, Stubernat, Buxmann, & Konig, 1999) Estudos ou documentos que contemplam recomendações (Dominguez & Gallego, 2006); (Smith & Pierce, 2005); (Fisher, Oyelere, & Laswad, 2004); (León, 2003); (Debreceny, Gray, & Mock, 2001); (Lymer, 1999); (Lymer, Debreceny, Gray, & Rahman, 1999); (Oyelere, Laswad, & Fisher, 2003); (Westarp, Dieter, Stubernat, Buxmann, & Konig, 1999); (Quagli & Riva, 2005); (Beattie & Pratt, 2003) …”

Internet financial Reporting in Malawi

“…Among various types of information the current study focuses on financial information which is basically disclosed through financial reports prepared by the companies. These reports play an essential role as they reflect the efficiency and effectiveness of the management of the organisation and the work being done by the organisation (Salawu, 2013).…”

“…As such, investors, analysts and others are accustomed to using the company websites to acquire the needed information (CICA & CIRI, 2008). potential investors (Salawu, 2013). The internet is offering the potential for companies to reach a wider range of users without time limits, or boundaries (Khan, 2007).…”

“…Thus the major advantage of the Internet is its flexibility, which, however, that also creates a disadvantage for credibility and authenticity (Wagenhofer, 2003). It is however recognised that the benefits of Internet outweigh the disadvantages hence almost every company maintains its website, especially in developed countries as evidenced in literature (Salawu, 2013).…”

“…It is evident that IFR is more than a viable alternative to paper-based form of reporting (Salawu, 2013). However, at the moment Salawu (2013) noted that the content, extent and format of disclosure on the website are yet to be standardized as a result different companies are adopting different financial reporting practices.…”