Financial Reporting On The Internet Is Now Gaining More Popularity Accounting Essay

Fiscal coverage on the cyberspace is now deriving more popularity in the field of research. Accounting patterns and accounting communicating in the modern concern operations has been mostly affected due to the rapid development of Internet Technology. The information expected to be provided in fiscal statements are those that are quantitative and qualitative in nature to help their relevant users who usually range from stockholders, investors, authorities, clients, employees to direction, rivals etc in doing economic determinations. All accounting information that will assist users to measure the fiscal liquidness, profitableness and viability of a coverage entity should be disclosed and presented in a clear logical and apprehensible mode.

Fiscal coverage is regarded as an of import and powerful agencies of circulating fiscal information. Until late, difficult transcripts ( paper ) have been the primary agencies for pass oning fiscal information to stockholders and other interested corporate stakeholders. The printed-based one-year study involves composing and printing of fiscal information. However, this signifier of coverage has certain drawbacks as increased cost associated with printing, limited transcripts available to merely selected market, less timely information and historical revelation the usage of disused engineering. As a consequence, many companies in developed and developing states now utilize the cyberspace to circulate corporate fiscal information and publicize their companies to stockholders and investors.

Internet Financial Reporting ( IFR ) refers to the usage of a company ‘s web site to administer information about the fiscal public presentation of the corporations. The cyberspace has the possible to revolutionise fiscal coverage and enables companies to make a wider scope of users due to the handiness of fiscal describing information on the web sites without clip bounds or boundaries. There are assorted facets of IFR that are different from the traditional difficult transcript presentation. These factors include the existent manner of presentation and the method of entree to the information, i.e. accessing a company ‘s web site instead than the difficult transcript version of the fiscal studies. Since no such research has yet been carried out here, it is a research country that is doubtless of great involvement.

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Aims of the Study

The intent of this survey is to look into on the position of fiscal coverage on the cyberspace by the Top 100 Companies in Mauritius. It analyses the current pattern of IFR by measuring the nature and content of fiscal describing information that a company may expose on its web site. With regard to the research subject selected here, the following aims stand out:

To understand the impact of cyberspace engineering on fiscal coverage ;

To look into the being or non-existence of companies ‘ web sites ;

To measure the types of fiscal information companies publish on their web sites. This will be done by look intoing assorted properties which will be categorized into two groups:

General Attributes that relate to the general information subdivision of the web site ;

Financial/Annual Report Attributes that focal point on the handiness of fiscal information and the contents of one-year studies every bit good as the handiness of portion monetary value public presentation within the web site.

To place the formats that are most normally used to show fiscal information online ;

To place the factors that could perchance find Internet fiscal coverage ;

To propose recommendations to heighten the pattern of IFR.

Outline of the Study

The range of the survey is organized as follows:

Chapter 1: Describes the job statement and lays down the research aims and research inquiries.

Chapter 2: Focuss on the literature reappraisal by pull outing old analysis and decisions drawn on cyberspace fiscal coverage.

Chapter 3: Describes the methodological analysis by discoursing and choosing the sample of companies and the specific attributes to be investigated.

Chapter 4: Reports the informations analysis and findings on the extent and nature of LFR by the Top 100 Companies in Mauritius.

Chapter 5: Provides a drumhead, decision and suggestions.

LITERATURE REVIEW

The literature reappraisal will assist in explicating research inquiries and set uping a relevant methodological analysis to carry through the survey. Most of the research on this subdivision has been based on old analysis and decisions drawn from web articles, text edition and related publications.

2.0 Financial coverage and the cyberspace in the modern concern environment

2.0.1 The models of fiscal coverage

Harmonizing to the modern organisation, the purpose of fiscal coverage is to provide utile information to stakeholders. Kieso and Weygandt ( 1986 ) states that “ fiscal coverage should supply information utile to investors, creditors and other users ” . The International Accounting Standards Board ( IASB ) has a similar construction ; this is the organisation that develops International Accounting Standards / International Financial Reporting Standards, applied throughout the universe and which came into consequence on December 1, 2001 in Mauritius. Accounting information is contained in fiscal studies ; for illustration, IAS 1- Presentation of Financial Reports, defines the set and basic constellation of the fiscal studies for companies that use IASB criterions ( IASB, 2000 ) . Apart from the conceptual model of the IASB, fiscal coverage can besides be governed by extra ordinances. For illustration, in Mauritius, every bit good as the accounting criterions of the IASB, there are a figure of Torahs and Regulations that govern the full construction of fiscal coverage for assorted intents and users. Thus the model of fiscal coverage in the broader senses means all the regulations and Torahs that regulate fiscal coverage.

2.0.2 The Internet and its application in modern concern operations

The worldwide web of computing machine webs is known as the Internet. The twelvemonth 1969 is normally known as the twelvemonth in which the Internet was developed. Initially, the intent of the cyberspace was to chiefly direct and have electronic mails but there is no admiration that today the most rapidly-developed Internet applications are electronic commercialism, Internet banking and advertisement. During the last 10 old ages or so modern concern operations have been progressively characterized by greater engagement of the Internet. Consumers can purchase books, vesture, portions and autos all from the comfort of their ain places by merely utilizing their recognition cards. Internet use is turning all around the universe, as in Mauritius every bit good. With a population of about 1,288,000, the figure of cyberspace users in Mauritius harmonizing to World Development Indicators ( WDI ) has increased continuously over the last 10 old ages. As shown in Figure 1.

From informations published in Figure. 1, it appears that at the terminal of 2008 about 22 % of the population of Mauritius used the Internet.

Figure 1: Number of Internet Users in Mauritius, 1996 – 2008

Data Beginning: World Bank, World Development Indicators – Last updated October 23, 2010

2.1 An debut to Internet Financial Reporting ( IFR )

Harmonizing to this research, the Internet is primary agencies of communicating that enables the presentation and determination of fiscal studies and other utile information. Due to the Rapid developments in information and communicating engineering, this has led bookmans and people in many states to see the nature of Internet Financial Reporting ( IFR ) and several other issues associating to the subject. In a 2010 article titled ‘Financial Coverage on the Internet: Evidence from the Fortune 100 ‘ , the writer stated that ‘The Internet has become one of investors ‘ most often used beginnings of information, and many companies are now describing all or portion of their fiscal information on their web sites ” . An of import facet of the survey is how IFR is defined. By definition, IFR refers to “ the usage of the houses ‘ web sites to circulate information about the fiscal public presentation of the corporations ” . However, Ashbaugh, Johnstone and Warfield ( 1999 ) employ a slightly narrow definition. They define IFR as “ the presentation of a comprehensive set of fiscal statements accessible straight from the company Web site or through a nexus to another site ( such as the Securities and Exchange Commission ‘s site ) ” . The built-in nature of the Internet affects fiscal coverage in the sense that information on a web site is available to anyone, anyplace and at any clip. For case, if you need a company ‘s one-year study on a Saturday dark, you can likely acquire it from the company ‘s web page. This shows that the Internet has changed the bringing of fiscal information.

2.2 Reasons for Adopting Internet Financial Reporting

2.2.1 Information available at Low Costss

Harmonizing to FASB ( 2000 ) , more than anything else, showing fiscal coverage over the Internet helps in cut downing the cost of production and distribution of fiscal information. In fact, any investor with a computing machine and an internet connexion may obtain information that, used to be accessible to a little group of people merely. The costs of printing and distributing information are no longer a barrier in forestalling the spreading of the information and cheaper is it to modify the information to suit users from different background.

2.2.2 Timely Information

With the aid of the Internet as a mean of communicating, Companies could supply more timely information to users. Ettredge, M. , Richardson, V. J. and Scholz, S. ( 2001 ) have pointed out that “ IFR could let users entree to digitized informations without waiting for it to be produced through the traditional channels ” . It is thought that this ability to supply seasonably and up to day of the month information will finally assist in increasing efficiency to the fiscal markets.

2.2.3 Increased the sum and type of informations disclosed

The Internet has besides been used as a agency to air more realistic information than is available in one-year studies to investors, as a consequence of the improved handiness of the information. ‘The cyberspace provides an chance for traveling beyond what is available in difficult transcript corporate fiscal statements to pass on extra fiscal information to users, perchance in real-time and on an synergistic footing ” . ( Wickramasinghe, N.,2006 )

2.2.4 Improved equality of information entree

The information provided to users over the Internet is besides expected to up to day of the month compared to the Reports and Histories on paper. It besides allows entree to information to other beginnings through the usage of hyperlinks, interactivity and hunt installations. Wickramasinghe and Lichtenstein ( 2006 ) states that “ IFR provides corporate organisations with a existent chance to widen fiscal revelation beyond the reproduction of a difficult transcript one-year study and better on the range, and interactivity of fiscal coverage, with multimedia, such as sound, life and picture, being used to potentially increase the apprehension of information ” .

2.3.5 Enhanced house ‘s Value

Voluntary revelations on company ‘s activities cut down information dissymmetry between the investors and the direction about a house ‘s fiscal status and consequences of operations in the corporate environment. It besides helps in pulling new stockholders, which would take to an addition in demand for the company ‘s stock and improves liquidness. Finally we may add that, IFR provides a platform for smaller companies to pull possible investors, giving them a better chance in making planetary market.

2.3 Nature/Types/Kinds of fiscal Information

To obtain a more elaborate analysis of the range and quality of fiscal coverage on the Internet in the context of Mauritian Top 100 Companies, it is necessary to happen out what sorts of fiscal information they publish over the cyberspace. Livingstone ( 2002 ) suggests that invention on corporate web sites should include the undermentioned:

2.3.1 General Attributes

First of wholly, it is imperative to look into for the being or non-existence of companies ‘ web sites which will so enable the probe for general and financial/annual study related properties. General attributes focal point on the easiness of voyaging the Website and trade with the chief Internet issues of fiscal coverage viz. the being of a Site Map or Search box, handiness of general intelligence about the company and News sum-ups, advertizements for companies ‘ merchandises or services and Investor dealingss ‘ contacts.

Site Map or Search Box

Harmonizing to Simon Petravick ( 1999:36 ) , “ the handiness of fiscal information should be clearly indicated on a company ‘s home page and interested parties should be able to rapidly turn up the coveted information in the fiscal coverage subdivision ” .

Methods normally used by companies to let entree to specific fiscal information are the being of a site map that looks like an organisational chart or hunt box that may be utilized to turn up specific information without browse. The handiness of a hunt engine on the web site could assist users happen information more easy and more rapidly.

News Summaries and links

News sum-ups subdivisions on corporate web sites typically include general intelligence about the company and imperativeness releases, which usually can be obtained from a company ‘s place page. A major advantage of supplying those sorts of information on the Website is to cut down the figure of standard phone calls a company receives for questions, which in turn reduces mailing costs.

Ads for companies ‘ merchandises or services

Wikipedia Encyclopedia ( 2010 ) defined on-line advertisement as a signifier of publicity which aimed at converting an audience to buy or take some action upon merchandises, thoughts, or services presented on the web site. It includes the name of a merchandise or service and how that merchandise or service could profit the consumers, therefore leting them to purchase merchandises and services at their ain convenience.

Investor dealingss ‘ contacts

Investor Relations ( IR ) allows bipartisan communicating and offers the possibility of sharing information between a company and its users. During 1999, Trites revealed in a survey done in North America and Canada that the usage of engineering in fiscal and concern coverage is taking to greater interactivity amongst users. Investor dealingss ‘ subdivisions of company websites provide assorted agencies of communicating between users, for illustration reference of its central offices, contact figure for stockholder services and the usage of electronic mail for obtaining information. Companies sometimes allow investors to direct messages from a web page within the company ‘s web site.

2.3.2 Financial/Annual Report Properties

Ashbaugh et Al. ( 1999 ) found that houses perceive their web sites to hold an of import influence in circulating fiscal information to stockholders. There is a rapid growing in the demand for this information by online investors. Based on old surveies, it can be expected that all the properties selected as fiscal related information, will look on web sites. These attributes focus on fiscal information available online and the contents of one-year study, every bit good as the handiness of current portion monetary value and portion public presentation.

Annual studies

By definition, Annual studies are rating prepared by companies at the terminal of a coverage twelvemonth which might be either on a calendar or financial footing. They represent a particular communicating chance, making beyond simple coverage of fiscal information. Harmonizing to Clackworthy ( 2000 ) , an one-year study is a manner to demo leading and vision, to reflect corporate values and to place a company. It is against this context that the importance of a company ‘s one-year study on its web site is evaluated. By doing an online transcript of the one-year study available on a corporate web site, this warrants maximal attending from investors and the company benefits itself of an first-class chance to pass on in international markets. Typically, an one-year study will incorporate the company ‘s fiscal statements, hearer ‘s study, notes to fiscal statements, sum-up of fiscal informations, fiscal high spots, president ‘s message, corporate information and direction study.

Fiscal Statements

Fiscal statementsA are records that outline the fiscal activities of a concern and are regarded as the chief intent of the one-year study. Harmonizing to the International Financial Reporting Standard ( IFRS ) Framework, the aim of fiscal statements is “ to supply information about the fiscal place, public presentation and alterations in fiscal place of an endeavor that is utile to a broad scope of users in doing economic determinations ” . Thus the elements of the fiscal statements will consist the statements of fiscal place, income statements, statements of comprehensive income, statement of alterations in equity and hard currency flows.

Auditor ‘s Report

Companies supplying one-year studies on their web sites are usually accompanied with hearer ‘s study tested to see whether the company ‘s fiscal statements comply with the Generally Accepted Accounting Principles ( GAAP ) . A As indicated by the IASB demands and other regulative models, Companies are non merely required to supply audit studies with their one-year studies, but they have to do certain that they separate audited information from un-audited information on their web sites. It is of import to observe that hearer ‘s studies on fiscal statements are neither ratings nor any other similar finding used to measure entities in order to do a determination. The study is merely an sentiment on whether the information presented is right and free from stuff misstatements, whereas all other findings are left for the user to make up one’s mind.

Fiscal Ratios

Fiscal ratios quantify many facets of a concern and are an built-in portion of the fiscal statement analysis. Ratios by and large hold no intending unless they areA benchmarkedA against something else, like past public presentation or another company. Businesss provide fiscal ratios in tabular arraies as a formal portion of the one-year study on their web sites. Posting ratios online vary typically from two or more old ages leting comparings and demoing the public presentation tendencies of the company. Fiscal ratios include profitableness, capital adequateness, market and public presentation ratios among others.

Other information

In this subdivision, we will discourse the properties that focus on the narrative subdivisions within one-year studies ; viz. , president ‘s message ( missive to stockholders ) , statement of managers, direction treatment and analysis, notes to fiscal statements and corporate profile. Berk ( 2001 ) stated that many companies expand their fiscal studies to include steps of advancement towards strategic ends, every bit good as “ softer ” information on societal and environmental public presentation. These attempts help decrease hazard and construct a repute for unity and responsible corporate citizenship.

Most of the companies usually provide a missive from the president addressed to the stockholders ( labeled as the Chairman ‘s Message ) on their web sites. In the ‘Statement of Directors ‘ subdivision, company managers are required to show a just reappraisal of consequences obtained in the fiscal statements, a description of the chief hazards and troubles faced by the company. This reappraisal enables stockholders to measure how the managers have performed their responsibility under the Companies Act 2006, to advance the success of the Company. The Management Discussion and Analysis ( MD & A ; A ) is another really of import subdivision of an one-year study used to supply an overview of the old twelvemonth of operation, how the company fared in that clip period and sketching besides theA hereafter ends and attacks to new undertakings for the extroverted twelvemonth. Notes to the Financial Statements is an incorporate portion of a company ‘s one-year study which is added to the terminal of the fiscal statements to supplement the reader with elaborate information. Its intent is to explicate the calculation of specific points in theA fiscal statementsA every bit good as supply a more comprehensive rating of a company ‘s fiscal status. Finally, a company is considered as supplying a ‘Corporate Profile ‘ within any subdivision of their web site if it had disclosed information about the figure of employees by location, a brief history of the company, the mission & A ; values or any other related information.

Share Price Performance

With the debut of IFR, a company ‘s portion monetary value and public presentation can now be available on its corporate web site, supplying investors with quicker entree to this information. Besides portion monetary values, companies may sometimes expose dividends, latest trades, trade volumes and historical monetary value informations. Comparisons can hence be made against relevant indices and rivals ‘ portion development. A portion monetary value show can be integrated anyplace on a web site for illustration on the place page or on the investor relation subdivision.

2.4 Formats used for showing fiscal information

Companies throughout the universe usage different computing machine package ‘s for fiscal coverage intents among which are Microsoft Word and Microsoft Excel which were antecedently used for administering and exhibiting fiscal every bit good as other signifiers of information. However, if a house decides to travel in for Internet fiscal coverage, there are assorted proficient chances and formats for the presentation of information. Lymer et Al. ( 1999 ) indicate that “ Internet coverage by the largest companies chiefly duplicate their printed fiscal statements in an electronic format such as Adobe Acrobat Portable Document Format ( PDF ) and Hypertext Markup Language ( HTML ) ” .

2.4.1 Adobe Acrobat Portable Document Format ( PDF )

Lymer et Al ( 1999:25 ) and Gray ( 2001 ) pointed out in their researches on fiscal information published on web sites that companies often include downloadable versions of their one-year studies in a Portable Document Format ( PDF ) file. PDF is a particular file format, developed by the Adobe Corporation, for making paperss that can look and publish precisely like the original printed papers. To see a PDF file, the user requires an Adobe Acrobat Reader circuit board to be installed on his/her computing machine. Furthermore harmonizing to Jones and Stanwick ( 2001:32 ) , doubling the printed fiscal statements into “ electronic paper ” is an cheap, straightforward procedure and is besides safe because it is hard to change these paperss ( Bagshaw 2001:11 ) .

2.4.2 Hypertext Mark-Up Language ( HTML )

Another electronic format used by companies to describe fiscal information on web sites is Hypertext Mark-Up Language ( HTML ) . HTML is the primary linguistic communication for Web development. An HTML papers can be viewed straight in the browser. Lymer et Al ( 1999:26 ) highlighted that “ HTML uses hypertext constructs to back up on-screen pilotage through links between any page and any other linked page ” . Although these links enable readers to get a big volume of related information expeditiously, they may besides make confusion about the boundaries and range of a company ‘s one-year study and the associated hearers ‘ study.

Throughout the survey, I will analyse the extent to which the Top 100 Companies in Mauritius make usage of either PDF files ( for downloading intents ) or by utilizing HTML or both at the same clip to show their one-year studies electronically.

Lymer et Al. ( 1999 ) concludes: “ Contented scopes from full one-year studies, fiscal statements, and imperativeness releases. Presentation manners are every bit diverse runing from inactive information on one extreme to sites that are enlivened with sound, picture and synergistic characteristics at the other reappraisal. ”

2.5 Factors finding Internet Financial Reporting

The aim of this research besides set uping the current pattern of IFR in Mauritius is to analyze factors that might possibly hold an impact on the determination to print or non to print fiscal information on the Internet. Many surveies conducted in other states have revealed that fiscal coverage on the Internet may be associated with several factors, peculiarly with the size of a company or its profitableness ( Pirchegger and Wagenhofer, 1999 ; Craven and Marston, 1999 ) .

2.5.1 Firm Size

Firm size seems to hold an of import influence on cyberspace corporate revelation. Consequences from anterior surveies often confirm a positive association between company size and a determination in favor of Internet fiscal coverage ( Meek, Roberts and Gray, 1995 ; Zarzeski, 1996 ; Almilia, 2009 ) . Xiao et Al. ( 1996 ) stated that “ big companies are more likely to utilize Information Technology than little 1s to better fiscal coverage to run into the greater demand for information ” .

First, it is easier for big houses to follow an invention, such as internet fiscal coverage and revelation, as they have information engineering section and have equal forces every bit good as the necessary resources to follow it. Furthermore, larger houses normally have more merchandises and more complex distribution webs which require larger and more complex direction information systems and databases for direction control intents. They besides have more current and possible stockholders than little companies, therefore supplying a greater involvement in printing fiscal studies. It is to be noted that assorted indexs can be used to mensurate size of a company, such as assets, equity, gross or figure of employees.

2.5.2 Profitableness

Surveies suggest that profitable companies have an inducement to unwrap more information, to signal the house ‘s profitableness to investors in order to back up direction continuance of their places and compensation ( Oyeler et al. , 2003 ) , and to raise capital at the lowest monetary value ( Marston and Polei, 2004 ) .

Harmonizing to Stolowy ( 2004 ) , “ When profitableness is low, directors are likely to unwrap less information to hide the grounds for losingss or worsening net income and to avoid the negative consequence on the house ‘s market value ” . Ismail ( 2002 ) found that profitableness may increase the likeliness of the house printing fiscal information via the cyberspace when this variable is within a peculiar scope. If it increases beyond this scope, the likeliness of houses printing fiscal information on the net lessenings.

Following old surveies, two ratios were used to mensurate profitableness ; return on assets which is net net income divided by entire assets ( Xiao et al. , 2004 ; Oyeler et al. , 2003 ; Ismail, 2002 ; Bushee and Leuz, 2005 ) , and return on equity which is net net income divided by equity ( Abd El Salam, 1999 ; Marston and Polei, 2004 ; Haniffa and Cooke, 2002 ; Oyeler et Al. 2003 ; Ismail, 2002 ) .

2.6 Empirical research refering fiscal Reporting on the Internet

With the development of the Internet and the enlargement of the usage of it for fiscal coverage, there has been an addition in the figure of empirical surveies related to this country. The earliest surveies were produced during 1996 and 1997, merely a twelvemonth after the planetary, corporate involvement in the Internet as an advertisement media had commenced.

Most of the earlier surveies focused on the being of Websites for top, stock exchanges listed companies and involved a reappraisal of the assorted type of information presented online. This includes Petravick and Gillet ( 1996 ) , Gray and Debreceny ( 1997 ) , Lymer and Tallberg ( 1997 ) , Deller, Stubenrath and Weber ( 1998 ) , Gowthorpe and Amat ( 1999 ) , Hedlin ( 1999 ) , Ashbaugh et Al. ( 1999 ) , Ettredge et Al. ( 2001 ) and late Hindi and Rich ( 2010 ) to call merely a few. Such probes normally provide informations about the per centum of corporations that use Internet fiscal coverage, the range of the fiscal information published and the format of the studies published.

Not surprisingly, the per centum of companies following IFR has been increasing throughout the old ages and statistics tell us all about it. For illustration in 1996, T.J. Louwers, W.R. Pasewark, and E.W.Typpo reported that 97 ( 65 % ) of the Fortune 150 United States ( US ) companies had web sites as of March 1996. In May of the same twelvemonth, Simon Petravick and John Gillett reported that the figure increased to 103 ( 69 % ) of the Fortune 150 had web sites. In 1997, G.L. Gray and R.S. Debreceny found that 96 of the Fortune 100 companies had web sites. In January 1999, the Business Reporting Research Project discovered that 99 of the Fortune 100 companies had web sites.

A 2003 article “ Developments in Internet Financial Reporting: Reappraisal and Analysis across five developed states ” by Lymer and Allam reported that 249 ( 99.6 % ) out of the 250 companies in 5 states viz. USA, UK, Canada, Australia and Hong Kong have Web sites and in merely one instance, no web site was located. The consequences showed that 86 % of the corporations holding a website provide a site map or a hunt box to its users. About 99 % of the companies surveyed had intelligence sum-ups subdivisions on their Web sites which typically include imperativeness releases and general intelligence about the company. This implies that most companies were supplying latest intelligence straight through their ain corporate Web sites. It was besides found that merely 54 % of the companies surveyed provided e-mail contacts on their web pages. About 45 % ( 113 companies ) provide an e-mail reference and 9 % alternatively allow investors to direct messages from a web page within the company ‘s or investor dealingss ‘ Website.

This survey showed that over 99.6 % of the 250 companies holding a web site, at least 95 % present their one-year studies out of which 94 % include the company ‘s fiscal statements. The hearer ‘s study is an of import beginning of credibleness and dependability for one-year studies. Consequently, 96.4 % of the companies made the hearer ‘s study available online and 9 ( 3.6 % ) did non supply it. This survey discovered that more US companies ( 68 % ) provided informations for fiscal ratios than the other 4 states. Canada and Australia followed, 62 % and 60 % severally whereas 56 % of the UK companies and 42 % of the Hong Kong companies supplied their fiscal ratios.

Most of the companies provided a missive from the president addressed to the stockholders. It was reported that 94.8 % of the companies provided this. Merely 14 companies did non supply such a missive and the bulk which did non supply this subdivision were those which did non supply their full one-year study online. Most of the companies provided a statement by their managers, with the exclusion of Hong Kong ‘s companies. 96 % of Canadian and Australian companies reported such subdivision, whereas 94 % of UK companies and 84 % of US companies reported it. 95.2 % of the companies provided a Management Discussion and Analysis ( MD & A ; A ) and Notes to Financial Statements within their one-year studies. The Corporate Profile was the class of information provided by the fewest companies either in their one-year study or within any other subdivision of their Web sites. Merely 24 companies reported information about their employees ‘ profile. The consequences showed that about 74.9 % of the companies made their latest stock monetary value available on their Website, and merely 67.3 % provided information about their portion monetary value public presentation.

The formats used in showing one-year studies on the Internet were besides analyzed in the survey. In this regard, the PDF format was the most used in showing one-year studies, about 53 % of the sample used this format. The usage of the HTML format to present one-year studies was found non to be popular. Merely 2.8 % of the companies surveyed used this method merely. However, of the 250 companies, it was found that 56 companies ( 22.4 % ) used both the HTML and the PDF formats to show their one-year studies over the Internet.

In a latest survey undertook by Hindi and Rich ( 2010 ) titled “ Fiscal Coverage on the Internet: Evidence from the Fortune 100 ” during 2003, 2006 and 2009, the writers found that all Fortune 100 companies had web sites and provided besides a transcript of their one-year study online. 70 % , 80 % , and 100 % of the Fortune 100 had a site map or hunt box in 2003, 2006, and 2009, severally.

The Fortune 100 web sites have emphasized a nexus to investor relations/financial information pages over the old ages, increasing the per centum of web sites with such links from 75 % in 2003 to 80 % in 2006 and 97 % in 2009. In this subdivision, 100 % included the latest stock monetary values, the imperativeness releases every bit good as advertizements for their merchandises or services in 2009. It is deserving observing that 100 % of the companies provided an e-mail reference to investor dealingss in 2009 compared to 54 % in 2003 and 100 % provided phone Numberss in 2009 compared to 74 % in 2003. Finally, 100 % provided a postal reference for investor dealingss in 2009 compared to 66 % in 2003.

In footings of ability to analyse the fiscal information, out of the 100 companies showing their one-year studies online, at least 94 % included the company ‘s fiscal statements ( compared to 82 % in 2003 ) , 93 % provided the hearer ‘s study ( compared to 80 % in 2003 ) , 97 of them presented the president ‘s message, 92 % had am MD & A ; A and 90 % integrated the notes to fiscal statements. Finally, 49 % ( 60 % ) provided their one-year study in an HTML format in 2009 ( 2003 ) , while 98 % ( 89 % ) provided their one-year study in a PDF format in 2009 ( 2003 ) .

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