Determinants of Corporate Internet Financial Reporting: Evidence from Top Twenty Listed Companies in Colombo Stock Exchange in Sri Lanka

Abstract

Disseminating financial information via internet is one strategy to facilitate decision makers, capture wider audience and to disclose more information than what is possible from traditional paper – based reporting. Current study focused to establish the level and the determinants of Internet Financial Reporting (IFR) done by listed companies in Sri Lanka. Consequently top twenty listed companies in Sri Lanka was surveyed since they assist both local and international investors to gauge the performance of the equity market. The level of IFR is measured by IFR index composed with Disclosure Content and Presentation Format elements. The study disclosed the level of IFR is above average and it is significantly and positively influenced by Company Size, Profitability, Leverage and Liquidity whereas significantly and negatively influenced by Ownership Concentration. Findings of this study assist and inform regulators about the characteristics of listed companies that are and are not satisfy domestic and international investors’ demand on online information.