Determinants of web-based corporate reporting among top public listed companies in Malaysia
2010 (English)In: International Journal of Arts and Sciences, ISSN 1557-718X, E-ISSN 1944-6934, Vol. 3, no 13, 187-212 p.Article in journal (Refereed) Published
The main objective of this paper is to examine the extent of Internet corporate disclosure among a sample of 100 top companies listed on Bursa Malaysia (based on market capitalization) for the year 2009. Using a disclosure score checklist, the result shows the average raw score for all companies is 49.04 (or 56%) of the total possible 87 points, and 70% of the firms obtain a score ranging from 50-70% of the total score. The result indicates that there is still room for Malaysian companies to improve their Internet corporate reporting (ICR). Further, the result indicates that among firm characteristics variables only profitability (proxy by return of equity) is significantly associated with the extent of Internet corporate reporting. The result supports the signaling theory that argues profitable companies have strong incentives to disclose information in order to stand out from their competitors and avoid an incorrect assessment of their performance. In addition, the study also finds that among corporate governance mechanisms only board size influence a firm’s internet disclosure behavior, presumably in response to the information asymmetry between management and investors and that a larger board is more likely to be vigilant for agency problems simply because a greater number of people will be reviewing management actions to disclose more information via the Internet.
Place, publisher, year, edition, pages
2010. Vol. 3, no 13, 187-212 p.
Internet corporate reporting, corporate governance, board size
IdentifiersURN: urn:nbn:se:hig:diva-19909OAI: oai:DiVA.org:hig-19909DiVA: diva2:827618