Factors of internet financial reporting : the case of Malaysia

Abstract

This paper examines the factors that influenee companies in Malaysia to engage in Internet Financial Repol1ing (lFR), Pereeptions of advantages and problems in using this new technology for financial reporting were also examined, The perceptions of preparers of financial information were solicited using a sarvey mailed questionaire. Preliminary findings suggested three factors that are perceived as important by responding to engage in IFR: (l) enhance corporate image, (2) company teller with the technology development and (3) competitors in the industry The findings also revealed three factors that inhibit firms from engaging in IFR: (I) need to keep information updated to be of use, (2) required expertise from the company. and (3) concern over security of information. The findings also suggested that global reach and mass communication' and 'timeliness and up-date ability' as the most important advantages from financial reporting on the Internet. On the other hand, 'security problems' and cost and expertise' are the disadvantages of placing financial information on the Internet. Finally. plausihle implications of the findings of the study are then presented and areas for future research are also proposed.