Internet Financial Reporting Practices of Ghanaian Listed Firms
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Date
2013-12-09
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Abstract
Internet Financial Reporting (IFR) is a common practice in developed countries. This practice is not prevalent in developing countries as a result of several obstacles such as technology, culture, cost and other factors. Notwithstanding these obstacles, some companies disseminate financial information through the internet in some developing countries. Prior studies have established some relationship between several corporate characteristics and IFR. The few studies conducted in developing countries are however based on countries in Asia. The purpose of this study is to examine IFR practices and the resultant factors that affect these practices among Ghanaian listed companies. The study examines the IFR practices of 18 companies listed on the Ghana Stock Exchange (GSE) via the use of a disclosure index adapted from Ali’s (2010) study. Ordinary least square (OLS) multiple regressions were used to examine the relationship between firm characteristics (size, profitability, liquidity and leverage) and IFR practices. The results indicate that IFR practices by Ghanaian listed companies are low and in its early years. The study also documents a significant relationship between the liquidity (negative), firm size and profitability (positive) of firms and their IFR practices. This paper will assist policy makers and regulatory bodies on disclosure in Ghana by enlightening them on the firms who are meeting the demands of investors (both national and international) by reporting on the internet. It will also contribute to the limited knowledge and literature on disclosure and IFR in Africa and emerging economies, especially Ghana.