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The effect of board characteristics on internet financial reporting quality: evidence from Malaysia

Bosi, Mathew Kevin and Ali Khan, Mohd. Noor Azli and Lajuni, Nelson and Riyard, Ag Kaifah (2020) The effect of board characteristics on internet financial reporting quality: evidence from Malaysia. International Journal of Academic Research in Accounting, Finance and Management Sciences, 10 (3). pp. 81-96. ISSN 2225-8329


Official URL: http://dx.doi.org/10.6007/IJARAFMS/v10-i3/7823


The emergence of digital technology has spurred utilization of internet financial reporting (IFR). However, without the initiative from a corporate board to address issues such as lacking vigorous regulations that prescribing best practices of online business reporting, IFR quality may not be elevated accordingly. The main objective of this study is to determine the extent of qualitative characteristics of IFR across Malaysian listed companies by examining the relationship between board characteristics and IFR quality (IFRQ), moderated by Effectiveness of Internal Audit Function (EIAF). Qualitative approach via non-probability purposive sampling was used to select the companies from 11 relevant industries in Malaysia, to which 160 companies were selected to examine these correlations. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) via WarpPLS version 7.0. The results prove that board size, independence of directors, and female directors significantly improve IFRQ. The EIAF appears to moderate only independent directors. This could be due to substitute effect between board quality and internal audit quality. This study provides a better understanding of the role of board characteristics towards improving IFRQ and enriching the literature on IFR measurement mechanism.

Item Type:Article
Uncontrolled Keywords:internet financial reporting, board characteristics, corporate governance, qualitative characteristics
Subjects:H Social Sciences > HG Finance
Divisions:International Business School
ID Code:28192
Deposited By: Yanti Mohd Shah
Deposited On:18 Sep 2012 06:10
Last Modified:31 Jan 2022 08:37

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