EMPIRICAL RESEARCH OF USERS’ OPINIONS ON SELECTED ASPECTS IN INTERNET FINANCIAL REPORTING

This study investigates the perceptions of users of corporate annual reports in relation to selected aspects of internet financial reporting. This study also analyzes Web analytics (Web usage and Web content analytics) to discover financial and non-financial usage and content patterns from company websites and other sources of World data. The case studies submitted in this article partly demonstrates the developed Web analytics systems. To serve this purpose, a questionnaire was distributed to five user groups (academics, students, managers, bank officers and auditors). From the survey, the analysis indicates that attracting’s foreign investors, promoting the company to a wider public, attract local investors and promote wider coverage are the four most important benefits of IFR to the company. The findings revealed that three main benefits to the users who collect financial information of companies via their website are: increases timeliness and efficiency in obtaining financial information, makes investment decision process easier and faster, and provides information about a company inexpensively. Preliminary findings suggested three factors that are perceived as important by responding firms to engage in IFR: enhance corporate image, company teller with the technology development, and competitors in the industry. The findings also revealed three factors that inhibit firms from engaging in IFR: required expertise from the company, need to keep information up to date to be of use and concern over security of information. The findings also suggested increased information and analysis, and global reach and mass communication as the most important advantages from financial reporting on the internet. On the other hand, security problems, and cost and expertise are the biggest disadvantages of placing financial information on the internet. Finally, plausible implications of the findings of the study are then presented and areas for future research are also proposed. Taken together, these research outcomes make an incremental contribution to the existing financial reporting literature by providing useful insights into our knowledge of IFR especially for emerging capital markets like Malaysia.