Tatjana Dolinšek and Andreja Lutar-Skerbinjek
The purpose of this research was to examine the impact of the determinants and characteristics of voluntary internet financial disclosures by large companies in Slovenia. With…
Abstract
Purpose
The purpose of this research was to examine the impact of the determinants and characteristics of voluntary internet financial disclosures by large companies in Slovenia. With this research, the authors wanted to determine the factors which impact on the differences between companies that use internet financial reporting and those that do not.
Design/methodology/approach
The research was conducted on a sample of large companies in Slovenia (n = 192), which was divided into two groups, depending on whether they use internet financial reporting. A binary logistic regression was undertaken to assess whether voluntary disclosure of financial information on the internet was related to the company’s size, profitability, age, company’s legal form, ownership dispersion and industry sector.
Findings
The research has shown that there is a statistically significant difference between the companies which use or do not use internet financial reporting. The likelihood that the companies will publish the internet financial information is greater in the case of public limited companies, companies that deal with the financial, energy or ICT sectors and companies that have a larger ownership concentration.
Originality/value
This is one of the first studies in Slovenia that was used to determine the factors according to which the companies that use internet financial reporting differentiate from those that do not.
Details
Keywords
Tatjana Dolinšek, Polona Tominc and Andreja Lutar Skerbinjek
The purpose of this paper is to establish the level of internet financial reporting (IFR) of Slovenian companies, including the contents as well as the presentations of online…
Abstract
Purpose
The purpose of this paper is to establish the level of internet financial reporting (IFR) of Slovenian companies, including the contents as well as the presentations of online financial information. The second objective was to explore the opinions of users towards newer methods of online financial reporting.
Design/methodology/approach
IFR was evaluated on the basis of the IFR index composed of 32 contents-related and 18 presentations-related elements. By means of regression analysis, the authors have established the intensity and direction of impact of six factors on the IFR index: size, profitability, the company's legal form, ownership concentration, age and sector.
Findings
During the first research phase, the authors established that 110 (52.64 per cent) of large companies disclose its financial information on its web site. Factors which impact the IFR are as follows: company size, ownership concentration, legal form and sector of operation. Larger companies, companies with a lower ownership concentration, public limited companies and financial sector companies disclose financial information to a greater extent compared to other companies.
Practical implications
This research will enable the comparison of the annual level of IFR in Slovenia and in other countries where such research has already been performed.
Originality/value
Through the disclosure of financial information online, companies will be able to improve the possibility of attracting foreign investors who often rely on the internet as the only source of information.