Measuring Internet Financial Reporing (IFR) disclosure strategy
There is a significant development in the accounting practices and communication due to the rapid growth of internet technology. Nonetheless, until today, financial reporting through the internet still has no legally structured standard compared to the formal international financial reporting st...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2017
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| Online Access: | http://journalarticle.ukm.my/13291/1/23484-80918-1-PB.pdf http://journalarticle.ukm.my/13291/ http://ejournal.ukm.my/ajac/issue/view/1068/showToc |
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| Summary: | There is a significant development in the accounting practices and communication due to the rapid growth of internet
technology. Nonetheless, until today, financial reporting through the internet still has no legally structured standard
compared to the formal international financial reporting standard (IFRS) that firms need to adhere. Yet, firms must still
consider stakeholders’ decision making based on internet accounting disclosures. Since the 1990s studies on Internet
Financial Reporting (IFR) apply various indexes to measure disclosure practices. However existing indexes mainly focus
only on the level and quality of IFR disclosure. Our study develops a new checklist – IFR disclosure strategy checklist – to
measure IFR disclosure strategy based on a taxonomy proposed by Williams (2008) which has not yet been empirically
tested until today. However, the taxonomy only outlines the characteristics of each proposed strategy. Our study takes the
challenge to interpret the taxonomy by developing a checklist for each characteristic that were describe in the taxonomy.
Utilizing content analysis, detailed consideration was made about items in the checklist based on prior studies, available
regulations in several countries as well as current practices by reporting entities. Results from reliability test indicate
that our checklist is a valid and reliable instrument with regards to our sample of study. It is expected that our checklist
will be referred to by reporting entities in order to assist stakeholders’ decision making. Eventually we hope that with
the knowledge about the disclosure strategy, stakeholders might reduce their time and effort in searching for the best
business entities when deciding upon their investment portfolio. |
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