Influence of web based reporting on firm performance a study of selected Indian US and Japanese companies

Abstract

The purpose of this study was to investigate the influence of Web-Based Reporting on Firm Performance. Currently, the levels of disclosures were very wide amongst companies at global level. It was intended in this research to identify the present trend of Web-Based Reporting Practices of Indian, U.S. and Japanese companies and also to analyse the effects of corporate attributes on their web disclosure practices. At last, the impact of web- based reporting on firm performance of these companies is also examined. The findings of the study reveal that there is a great deal of variations in the nature and extent of information disclosed on the websites of selected sample companies. The entire sample companies having their own websites and also provides information about the attributes included in the disclosure index in very dynamic way. But majority of these companies are not taking advantage of emerging technologies, such as web casts and e-mail alerts, in order to reach investors in a more efficient, cost effective manner. A possible explanation for these findings could be the lack of regulatory initiatives, legal impediments and inequity in relation to access to this medium. Results indicate that Web-Based Reporting has significant positive impact on the firm Performance and investors attach value to disclosure of information through corporate websites while making investment decisions. In this study recommendations were made to improve web-based disclosure by companies and to make the Internet a more reliable source for presentation of financial reporting information. newline