Pandangan Pengguna Penyata Kewangan terhadap Kepentingan Item di dalam Indeks Pelaporan Kewangan Menerusi Internet di Malaysia
DOI:
https://doi.org/10.11113/jt.v61.1679Keywords:
Users, indices, weighted score, internet financial reporting, MalaysiaAbstract
This study investigates the perceptions of users of financial statement regarding the importance of items in indices of internet financial reporting (IFR). This study adopts the questionnaire survey method in order to seek the view of users of financial statement, particularly on the importance of items that to be included in the checklist of IFR indices. From a comprehensive review of the IFR literature, the level of IFR in this study can be categorized into two dimensions namely the ‘content’ and ‘presentation’. The findings show that the five most important items which are income statement of current year, cash flow statement of current year, balance sheet of current year, annual report of current year (full text), and auditor report of current year can explain the dimension of content. Meanwhile, the five most important items for the dimension of presentation which are annual report in PDF format, loading time of the website, link to homepage, hyperlinks inside the annual report, and link to table of contents. Results of the study also provide empirical evidence that 144 disclosure items can be used for the checklist of IFR indices to measure the level of IFR. The finding provides an insight into the IFR practice in Malaysia. Implications of these findings and future research directions are also discussed in this study.
References
Abdelsalam, O.H., Bryant, S.M., and Street, D.L. 2007. An Examination of Comprehensiveness of Corporate Internet Reporting Provided by London-Listed Companies. Journal of International Accounting Research. 6(2): 1–33.
Abdelsalam, O.H., and El-Masry, A. 2008. The impact of board independence and ownership structure on the timeliness of corporate internet reporting of Irish-listed companies. Managerial Finance. 34(12): 907–918.
Abdelsalam, O.H., and Street, D.L. 2007. Corporate governance and the timeliness of corporate internet reporting by U.K. listed companies. Journal of International Accounting, Auditing and Taxation. 16: 111-130.
Abdul Hamid, F.Z. 2005. Malaysian companies’ use of the internet for investor relations. Corporate Governance: The International Journal of Business in Society. 5(1): 5–14.
Abdul Hamid, F.Z., and Md Salleh, M.S. 2005. The Determinants of the Investor Relations Information in the Malaysian Companies’ Website. Corporate Ownership & Control. 3(1): 173–185.
Abdul Hamid, F.Z., Md Salleh, M.S., and Mohamad, R. 2006. A survey of the use of internet for the investor relations by the Malaysian and Singapore firms. Unpublished Research Report. Sintok, Malaysia: Universiti Utara Malaysia, School of Accounting.
AbuGhazaleh, N.M., Qasim, A., and Haddad, A.E. 2012. Perceptions and attitudes toward corporate website presence and its use in investor relatins in the Jordanian context. Advances in Accounting. 28(1): 1–10.
Al-Htaybat, K. 2011. Corporate online reporting in 2010: a case study in Jordan. Journal of Financial Reporting & Accounting. 9(1): 5–26.
Al-Htaybat, K., Alberti-Alhtaybat, L.V., and Hutaibat, K.A. 2011. Users’ Perceptions on Internet Financial Reporting Practices in Emerging Market: Evidence from Jordan. International Journal of Business and Management. 6(9): 170–182.
Al Arussi, A.S., Selamat, M.H., and Mohd Hanefah, M. 2009. Determinants of financial and environmental disclosures through the internet by Malaysian companies. Asian Review of Accounting. 17(1): 59–76.
Ali Khan, M.N.A. 2010. Pelaporan Kewangan menerusi Internet: Indeks, Tahap Pelaporan dan Faktor Penentunya. Unpublished PhD Dissertation: Universiti Utara Malaysia, Sintok, Kedah.
Ali Khan, M.N.A., and Ismail, N.A. 2008. Kepentingan Item Pelaporan Kewangan Menerusi Internet: Satu Kajian Awal. Paper presented at International Accounting and Business National Management Conference (NAMAC) 2008, Terengganu, December 13–14, 2008.
Ali Khan, M.N.A. and Ismail, N.A. 2009a. Internet Financial Reporting in Malaysia: Factors, Pros and Cons. Accountants Today. 22(2): 28–31.
Ali Khan, M.N.A and Ismail, N.A. 2009b. Dimensi Pelaporan Kewangan Menerusi Internet. International Journal of Management Studies. 16(1): 75–96.
Ali Khan, M.N.A. and Ismail, N.A. 2010. Kajian Awal terhadap Kepentingan Item Pelaporan Kewangan Menerusi Internet di Malaysia. International Journal of Management Studies. 17(2): 205–230.
Ali Khan, M.N.A. and Ismail, N.A. 2011a. The Use of Disclosure Indices in Internet Financial Reporting Research. Journal of Global Business and Economics. 3(1): 157–173.
Ali Khan, M.N.A., and Ismail, N.A. 2011b. The Level of Internet Financial Reporting of Malaysian Companies. Asian Journal of Accounting and Governance. 2: 27-39.
Ali Khan, M.N.A., and Ismail, N.A. 2011c. Pelaporan Kewangan Menerusi Internet: Tinjauan Kajian Lepas. International Journal of Management Studies. 18(2): 21–52.
Ali Khan, M.N.A., and Ismail, N.A. 2012a. A Review of E-Financial Reporting Research. Journal of Internet and e-Business Studies. 2012: 16 pages.
Ali Khan, M.N.A., and Ismail, N.A. 2012b. An empirical study on the indexes of internet financial reporting: The case of Malaysia. African Journal of Business Management. 6(5): 2086–2100.
Ali Khan, M.N.A., and Ismail, N.A. 2012c. Users’ Perceptions of Various Aspects of Malaysian Internet Financial reporting. Journal of Organizational Management Studies. 2012: 14 pages.
Allam, A., and Lymer, A. 2003. Development in Internet Financial Reporting: Review and Analysis Across Five Developed Countries. The International Journal of Digital Accounting Research. 3(6): 165–199.
Aly, D., Simon, J., and Hussainey, K. 2010. Determinants of corporate internet reporting: evidence from Egypt. Managerial Auditing Journal. 25(2): 182–202.
Ashbaugh, H., Johnstone, K.M., and Warfield, T.D. 1999. Corporate Reporting on the Internet. Accounting Horizons. 13(3): 241–257.
Ayob, A.M. 2005. Kaedah Penyelidikan Sosioekonomi. 3rd ed. Kuala Lumpur: Dewan Bahasa dan Pustaka.
Barako, D.G., Rusmin, R., and Tower, G. 2008. Web communication: An Indonesian perspective. African Journal of Business Management. 2(3): 53–58.
Barsky, N.P., and Catanach, A.H. 2011. Every Manager Can Be an Innovator. Strategic Finance. 93(2): 22–29.
Bonson, E., and Escobar, T. 2002. A Survey on Voluntary Disclosure on the Internet: empirical Evidence from 300 European Union Companies. The International Journal of Digital Accounting Research. 2(1): 27–51.
Bonson, E., and Escobar, T. 2006. Digital reporting in Eastern European: An empirical study. International Journal of Accounting Information System. 7: 299–318.
Boubaker, S., Lakhal, F., and Nekhili, M. 2012. The determinants of web-based corporate reporting in France. Managerial Auditing Journal. 27(2): 126–155.
Bozcuk, A.E. 2012. Internet financial reporting: Turkish companies adapt to change. Managerial Finance. 38(8): 786–800.
Celik, O., Ecer, A., and Karabacak, H. 2006. Impact of Firm Specific Characteristics on the Web Based Business Reporting: Evidence from the Companies Listed in Turkey. Problems and Perspectives in Management. 4(3): 100–133.
Chan, W.K., and Wickramasinghe, N. 2006. Using the internet for financial disclosure: the Australian experience. International Journal Electronic Finance. 2(1): 118–150.
Cooke, T.E., and Wallace, R.S.O. 1989. Global Surveys of Corporate Disclosure Practices and Audit Firms: A Review Essay. Accounting and Business Research. 20(77): 47–57.
Curuk, T. 2008. An analysis of the companies’ compliance with the EU disclosure requirements and corporate characteristics influencing it: A case of Turkey. Critical Perspectives on Accounting. Retrieved August 6, 2008, from doi:10.1016/j.cpa.2007.05.003.
Davey, H., and Homkajohn, K. 2004. Corporate Internet Reporting: An Asian Example. Problems and Perspectives in Management. 2: 211–227.
Debreceny, R., Gray, G.L., and Rahman, A. 2002. The determinants of internet financial reporting. Journal of Accounting and Public Policy. 21(4-5): 371–394.
Despina, A.C., and Demetrios, P.L. 2009. The web-based financial reporting adopted by the listed companies in the Athens Stock Exchange. Journal of Modern Accounting and Auditing. 5(7): 7–20.
Erer, M. 2011. The Impact of Corporate Governance on Internet Financial Reporting: Evidence from Turkey. International Journal of Business Research. 11(3): 26–46.
Ettredge, M., Richardson, V.J., and Scholz, S. 2001. The presentation of financial information at corporate Web sites. International Journal of Accounting Information Systems. 2: 149–168.
Ettredge, M., Richardson, V.J., and Scholz, S. 2002. Dissemination of information for investors at corporate Web sites. Journal of Accounting and Public Policy. 21: 357–369.
Ezat, A., and El-Masry, A. 2008. The impact of corporate governance on the timeliness of corporate internet reporting by Egyptian listed companies. Managerial Finance. 34(12): 848–867.
FASB. 2000. Business reporting research project: Electronic distribution of business reporting information. Steering Committee Report Series. Financial Accounting Standards Board.
Frazer, L., and Lawley, M. 2000. Questionnaire design & administration. Australia: John Wiley & Sons.
Gibbins, M., McCracken, S.A., and Salterio, S.E. 2007. The Chief Financial Officer’s Perspective on Auditor-Client Negotiations. Contemporary Accounting Research. 24(2): 387–422.
Gowthorpe, C. 2004. Asymmetrical dialogue? Corporate financial reporting via the Internet. Corporate Communications: An International Journal. 9(4): 283-293.
Haniffa, R.M. 1999. Culture, Corporate Governance and Disclosure in Malaysian Corporation. Unpublished PhD Thesis, University of Exeter, United Kingdom.
Hanifa, M.H., and Ab. Rashid, H. 2005. The Determinants of Voluntary Disclosures in Malaysia: The Case of Internet Financial Reporting. UNITAR E-Journal. 2(1): 22–42.
Hassan, S, Jaaffar, N., Johl, S.K., and Mat Zain, M./N. 1999. Financial reporting on the internet by Malaysian companies: Perceptions and practices. Asia-Pacific Journal of Accounting, 6(2): 299-319.
Henchiri, J.E. 2011. Voluntary web-based disclosures by Moroccan and Tunisian companies. EuroMed Journal of Business. 6(2): 155-173.
Ho, S.S.M., and Wong, K.S. 2001. A study of the relationship between corporate governance structures and the extent of voluntary disclosure. Journal of International Accounting, Auditing & Taxation. 10: 139–156.
Ho, S.S.M., and Wong, K.S. 2003. Preparers’ perceptions of corporate reporting and disclosure. International Journal of Disclosure and Governance. 1(1): 71–81.
Hodge, F.D. 2001. Hyperlinking Unaudited Information to Audited Financial Statements: Effects on Investor Judgements. The Accounting Review. 76(4): 675–691.
Hodge, F., and Pronk, M. 2006. The Impact of Expertise and Investment Familiarity on Investors’ Use of Online Financial Report Information. Journal of Accounting, Auditing & Finance. 21(3): 267–292.
Hodge, F.D., Kennedy, J.J., and Maines, L.A. 2004. Does Search-Facilitating Technology Improve the Transparency of Financial Reporting? The Accounting Review. 79(3): 687–703.
Homayoun, S., Abdul Rahman, R., and Bashiri, N. 2011. Internet corporate reporting among public listed companies in Malaysia: An exploratory study. African Journal of Business Management. 5(30): 11863–11873 .
IASC. 1999. IASC Publishers Study of Business Reporting on the Internet. Press Release: International Accounting Standards Committee, 15 November 1999.
Inchausti, B.G. 1997. The influence of company characteristics and accounting regulation on information disclosed by Spanish firms. The European Accounting Review. 6(1): 45–68.
Ismail, N.A., and Tayib, M. 2000. Financial Reporting Disclosure on the Internet by Malaysian Public Listed Companies. Akauntan Nasional. 13(10): 28–33.
Ismail, T.H., and Sobhy, N.M. 2009. Determinants of auditors’ perceptions of the work needed in the audit of internet-based financial reports in Egypt. Journal of Applied Accounting Research. 10(2): 132–150.
Jaffar, R., Hassan, M.S., and Muhammad, N. 2010. Peranan Etika dalam Pelaporan Maklumat Alam Sekitar di Malaysia. Jurnal Pengurusan. 31: 13–27.
Keliwon, K., and Aziz, K.A. 2005. Web financial reporting in Malaysia. The current stage. Proceedings of International Conference on E-Commerce 2005, Kuala Lumpur. 59–65.
Kelton, A.S., and Yang, Y. 2005. The impact of corporate governance on Internet financial reporting. Working Paper, Department of Accounting and Information Management, University of Tennessee.
Kelton, A.S., and Yang, Y. 2008. The impact of corporate governance on Internet financial reporting. Journal of Accounting and Public Policy. 27(1): 62–87.
Khadaroo, M.I. 2005a. Business reporting on the internet in Malaysia and Singapore: A comparative study. Corporate Communications: An International Journal. 10(1): 58–68.
Khadaroo, M.I. 2005b. Corporate reporting on the internet: some implication for the auditing profession. Managerial Auditing Journal. 20(6): 578–591.
Khan, T. 2006. Financial Reporting Disclosure on the Internet: An International Perspective. Unpublished doctoral dissertation, Victoria University, Footscray Park, Victoria, Australia.
Ku Ismail, K.N.I., and Chandler, R. 2005. Perceptions of Professional Investors in Malaysia on the Usefulness of Quarterly Financial Reports. Jurnal Pengurusan. 24: 105–124.
Ku Ismail, K.N.I., and Chandler, R. 2007. Quarterly Financial Reporting: A Survey of Malaysian Users and Preparers. Research in Accounting in Emerging Economies. 7: 53–67.
Leng, T.L., Lazar, J., and Othman, R. 2007. Adoption of Financial Reporting Standards (FRSs): Impact on Malaysian Companies. Unpublished research report. Malaysian Accountancy Research and Education Foundation.
Lybaert, N. 2002. On-Line Financial Reporting: An Analysis of the Dutch Listed Firms. The International Journal of Digital Accounting Research. 2(4): 195–234.
Lymer, A., and Tallberg, A. 1997. Corporate Reporting and the Internet - a survey and commentary on the use of the WWW in corporate reporting in the UK and Finland. Paper presented at the Annual Congress of the European Accounting Congress, Graz, Austria.
Malhotra, P., and Makkar, R. 2012. A Study of Corporate Web Reporting Practices in India. The IUP Journal of Corporate Governance. XI(1): 7–19.
Marston, C., and Polei, A. 2004. Corporate reporting on the Internet by German companies. International Journal of Accounting Information System. 5: 285–311.
McDonald, R., and Lont, D. 2001, September. Financial Reporting on the Web – A 2001 Review. Chartered Accountants Journal. 64–68.
Mirshekary, S., and Saudagaran, S.M. 2005. Perceptions and characteristics of financial statement users in developing countries: Evidence from Iran. Journal of International Accounting, Auditing and Taxation. 15: 33–54.
Mohamad, R., Saad, S., Ismail, S.A., and Abdul Rahman, A. 2006. Malaysian Corporate Website: A survey of Web Characteristics. Paper presented at International Conference on ICT for the Muslim World (ICT4M) 2006, Kuala Lumpur, November 21-23, 2006.
Mohd Hanafi, S.R., Kasim, M.A., Ibrahim, M.K., and Hancock, D.R. 2009. Business Reporting on the Internet: Development of a Disclosure Quality Index. International Journal of Business and Economics. 8(1): 55–79.
Mohd Hanafi, S.R., Kasim, M.A., Ibrahim, M.K., and Othman, R. 2008. Internet Business Reporting: Development of a Disclosure Quality Index (IBRQ). Paper presented at International Accounting and Business Conference (IABC) 2008, The Puteri Pan, Johor Bahru, Johor, August 18-19, 2008.
Mohd Isa, R. 2006. Graphical Information in Corporate Annual Report: A Survey of Users and Preparers Perception. Journal of Financial Reporting & Accounting. 4(1): 39–60.
Momany, M.T., and Shorman, S.A. 2006. Web-based Voluntary Financial Reporting of Jordanian Companies. International Review of Business Research Papers. 2(2): 127–139.
Moradi, M., Salehi, M., and Arianpoor, A. 2011. A study of the reasons for shortcomings in establishment of internet financial reporting in Iran. African Journal of Business Management. 5(8): 3312–3321.
Nurunnabi, M., and Hossain, M.A. 2012. The voluntary disclosure of Internet financial reporting (IFR) in an emerging economy: a case of digital Bangladesh. Journal of Asia Business Studies. 6(1): 17–42.
Oppenheim, A.N. 1992. Questionnaire Design, Interviewing and Attitude Measurement. (New ed.). London, UK: Pinter.
Oyelere, P., Laswad, F., and Fisher, R. 2003. Determinants of Internet Financial Reporting by New Zealand Companies. Journal of International Financial Management and Accounting. 14(1): 26–61.
Pervan, I, and Sabljic, M. 2011. Voluntary Internet Financial Reporting in Croatia – Analysis of Trends and Influential Factors. The Business Review. 17(2): 213–219.
Poon, Park-Look, Li, D., and Yu, Y.T. 2003. Internet Financial Reporting. Information Systems Control Journal. 1: 1–3.
PricewaterhouseCoopers. 2002. Market Readiness for Disclosure-Based Regulation, Highlights from survey on the readiness for the Malaysian Market Capital participants for DBR. Kuala Lumpur: Securities Commission.
Seetharaman, A., and Subramaniam, R. 2005/2006. Navigating the Web of Financial Reporting. European Business Forum. Winter(23): 51–54.
Sekaran, U. 2003. Research Methods For Business A Skill Building Approach. 4th ed. USA: John Wiley & Sons, Inc.
Spanos, L. 2006. Corporate reporting on the internet in a European emerging capital market: the Greek case.
Sriram, R.S. and Laksmana, I. 2006. Corporate Web Site Reports: Some Evidence on Relevance and Usefulness. Information Resources Management Journal. 19(3): 1–17.
Standen, C.J.V. 1998. The usefulness of the Value Added Statement in South Africa. Managerial Finance. 24(11): 44–59.
Topalian, A. 2003. Experienced reality The development of corporate identity in the digital era. European Journal of Marketing. 37(7/8): 1119–1132.
Trabelsi, S., Labelle, R., and Laurin, C. 2004. CAP Forum on E-Business: The Management of Financial Disclosure on Corporate Websites: A Conceptual Model. Canada Accounting Perspectives. 3(2): 235-259.
Turel, A. 2010. The Expectation Gap in Internet Financial Reporting: Evidence from an Emerging Capital Market. Middle Eastern Finance and Economics. 8: 94–107.
Uyar, A. 2012. Determinants of corporate reporting on the internet An Analysis of companies listed on the Istanbul Stock Exchange (ISE). Managerial Auditing Journal. 27(1): 87–104.
Wallace, R.S.O. 1988. Corporate financial reporting in Nigeria. Accounting and Business Research. 18(72): 352–362.
Wallace, R.S., Kamal, N., and Mora, A. 1994. The Relationship between the Comprehensiveness of Corporate Annual Reports and Firms Characteristics in Spain. Accounting and Business Research. 25(97): 41–53.
Wilmshurst, T.D., and Frost, G.R. 2000. Corporate environmental reporting A test of legitimacy theory. Accounting, Auditing Accountability Journal. 13(1): 10–25.
Xiao, J.Z., Yang, H., and Chow, C.W. 2004. The determinants and characteristics of voluntary Internet-based disclosures by listed Chinese companies. Journal of Accounting and Public Policy. 23: 191–225.
Downloads
Published
Issue
Section
License
Copyright of articles that appear in Jurnal Teknologi belongs exclusively to Penerbit Universiti Teknologi Malaysia (Penerbit UTM Press). This copyright covers the rights to reproduce the article, including reprints, electronic reproductions, or any other reproductions of similar nature.
