Determinants of Internet Financial Reporting by Egyptian Companies

Abstract

This research aims at examining the determinants of internet financial reporting by Egyptian companies through measuring the extent of internet financial reporting (IFR) practices in Egypt and the association between IFR and the Egyptian listed companies’ characteristics. The research sample consists of 133 Egyptian companies listed on the Egyptian stock exchange as well as Nile stock exchange. The sample includes only those companies that disclose financial information on the internet. This research considers; company’s size, profitability, liquidity, leverage, company’s age, auditor type and ownership structure as the independent variables that might impact the company’s’ corporate IFR practices. Moreover, a disclosure checklist of 56 voluntary items is adopted to measure the level of IFR. The findings of the multiple regression models revealed that three independent variables were found significantly associated with the level of Internet Financial Reporting including; company’s size, auditor type and the company’s age. However, other company characteristics were found insignificant such as liquidity, leverage, profitability and ownership structure.

Keywords: Internet, Financial Reporting, Egypt, Disclosure, Corporate Financial Reporting