Abstract:

This paper aims to investigate the perceptions of corporate annual report users on the beneficial of internet financial reporting (IFR). Further, this paper examines the factors that influence companies in Malaysia to engage in IFR. Finally, perceptions of advantages and problems in using this new technology for financial reporting were also examined. The perceptions of corporate annual report users were solicited using a survey mailed questionnaire. The findings of this study suggested three main benefits to companies that engage in IFR: attract foreign investors, promote company wider to the public, and provide wider coverage. The findings also revealed that three main benefits to the users who collect financial information of companies via their website are: increases timeliness and efficiency in obtaining financial information, makes investment decision process easier and faster, and provides information for company inexpensively. Preliminary findings suggested three factors that are perceived as important by responding firms to engage in IFR: enhance corporate image, company teller with the technology development, and competitors in the industry. The findings also revealed three factors that inhibit firms from engaging in IFR: required expertise from the company, need to keep information update to be of use, and concern over security of information. The findings also suggested that increased information and analysis as the most important advantages from financial reporting on the Internet. Moreover, security problems are the disadvantages of placing financial information on the Internet. Finally, plausible implications of the findings of the study are then presented and areas for future research are also proposed.