DETERMINANTS OF CORPORATE INTERNET FINANCIAL REPORTING: EVIDENCE FROM SRI LANKA

Abstract

Internet Financial Reporting is the disclosure of financial and non-financial information of a company through the company's official website. The rapid development of the internet has created new ways for companies to facilitate communication with investors. Investors can obtain the needed information by looking at the information accessible on the company's website pages. This study aims to provide empirical evidence of the influence of company size, profitability, leverage, auditor size, ownership and liquidity on Internet Financial Reporting (IFR). The sample used in this study were 80 non-financial companies listed on the Colombo Stock Exchange in 2019. With proportional stratified random sampling method, the sample firms are grouped according to the type of industry. Data used in this study is a secondary data obtained from the annual reports of listed companies in Colombo Stock Exchange in 2019 and observations on the company's website. data analysis techniques used in this study are multiple regression analysis tests and hypothesis testing with a significant level (α) 0.05. The results of this study show only company size and leverage that significantly influence on the level of inherent financial repouring. Variables of profitably, auditor size, ownership structure and liquidity have no significant effect on the level of internet financial reporting. This study provides the knowledge gap in identifying the determinates of level IFR and also it is expected to have significant policy implications.