Web-Based Investor Relations Disclosures: a Communication Perspective

Abstract

Using the Internet as a tool for carrying out investor relations disclosure was examined heavily in the last two decades. Prior studies examining corporate web-based practices regarding the disclosure of financial information followed a relatively similar pattern which viewed these practices as an electronic version of paper based disclosures. As a result, the disclosure of investor relations information on websites relied mainly on the content and presentation of information disclosed on the internet (as described by IASC, 1999 and FASB, 2000). However, the internet as a communication tool provides a rich environment by which companies can use it not only to disseminate information, but also to create a dialogue with investors and stakeholders, which as a result is expected to enhance transparency in the business environment and make investors more informative about corporate activities.

The purpose of this paper is to provide a conceptual framework to assess corporate investor relations disclosure by blending the guidelines provided by IASC (1999), FASB (2000) with a communication essence that takes into account levels of communication the internet might provide for its users.

Key Words: Investor Relations, Internet Financial Reporting, Financial Communication, Financial Reporting, Web Financial Reporting.