Empirical research of users’ opinions on selected aspects in internet financial reporting
Abstract
This study investigates the perceptions of users of corporate annual reports in relation to selected aspects of internet financial reporting. This study also analyzes Web analytics (Web usage and Web content analytics) to discover financial and non-financial usage and content patterns from company websites and other sources of World data. The case studies submitted in this article partly demonstrates the developed Web analytics systems. To serve this purpose, a questionnaire was distributed to five user groups (academics, students, managers, bank officers and auditors). From the survey, the analysis indicates that attracting’s foreign investors, promoting the company to a wider public, attract local investors and promote wider coverage are the four most important benefits of IFR to the company. The findings 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 about a 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 up to date to be of use and concern over security of information. The findings also suggested increased information and analysis, and global reach and mass communication as the most important advantages from financial reporting on the internet. On the other hand, security problems, and cost and expertise are the biggest 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. Taken together, these research outcomes make an incremental contribution to the existing financial reporting literature by providing useful insights into our knowledge of IFR especially for emerging capital markets like Malaysia.
Full text
146 2017, XX, 2
Finance
DOI: 10.15240/ ul/001/2017-2-011
In oduc ion
This pape analyzes on he pe cep ions
o in e ne i nancial epo ing (he eina e
e e ed o as IFR) in Malaysia. While in e ne
i nancial epo ing is as and a ac i e
becoming he s anda d in de eloped coun ies,
bu , ew o p e ious s udies ha e ocused on
his phenomenon in de eloping coun ies. In
ecen yea s in e ne usage ha e inc eased
o dissemina ion o co po a e in o ma ion and
is seen as a globaliza ion p ocess (Mo adi e
al., 2011; Gallego-Al a ez, 2011; Valen ine i &
Rea, 2012). In addi ion, he sys em o economic
digi alized (Shi i e al., 2013). Thus, disclosu e
o i nancial epo ing ep esen s con inuing
imp o emen o e adi ional me hods such as
pape based in e ms o supplying imely da a,
lowe cos and speed in ob aining in o ma ion
abou co po a ions (Ojah & Moko eli, 2012;
And ikopoulos e al., 2013). Mo eo e , pape -
based annual epo s a e less use ul now in
e ms o imeliness and eliabili y as he wo ld is
highly elian on in o ma ion and communica ion
echnologies (E edge e al., 2002). In e ne
connec ion has se e al di ec ions in na u e and
e y apid in ansmission and o e s inc eased
accessibili y o i nancial and non- i nancial
in o ma ion (Bollen e al., 2008; Sanchez e al.,
2011). Many companies a ound he wo ld a e
mo i a ed o p ac ice IFR o mee use s’ needs
o mo e imely in o ma ion (Amin & Mohamed,
2016).
Acco ding o cu en IFR li e a u e, e olu ion
o IFR is he signi i can opic in s udies. The IFR
esea ch e olu ion can classi i ed in he a ious
desc ip i e esea ches, hemes, dimensions o
IFR, associa ion esea ches and classi i ca ion o
IFR. In addi ion; he s udy on IFR can ca ego ies
in di e en ypes such as; desc ip i e s udy some
coun ies, s udy by schola s and explana o y
s udy. (Ali Khan, 2010). Fu he mo e; s udies
on IFR can be ca ego ized based on i s
and second gene a ion (Al-H ayba , 2011).
Al hough; p e ious s udies ha e emphasized
on IFR esea ches in las wo decades, ew o
p e ious pape s ha e ocused and desc ip he
ela ionship be ween a i udes and p e e ences
o co po a e annual epo use and co po a e
beha iou pa icula ly in de eloping coun ies
such as Malaysia. As well, he success o
elec onic go e nmen policy in Malaysia has
inc eased he numbe o companies ha u ilize
in e ne i nancial epo ing in bo h he public and
p i a e sec o s (Abdul Aziz e al., 2011). This is
because companies had ealized he bene i s
associa ed wi h IFR (Poon e al., 2003). Fi ms
which a e adop ing he in e ne o accoun ing
and i nancial in o ma ion p esen a ion may see
addi ional bene i s o e addi ional cos s by
p o iding i nancial epo s h ough a websi e
(Khan, 2006). In addi ion, he de elopmen o
in o ma ion echnology makes a e olu ion in
achie e in o ma ion ou side o a ound he wo ld
(Shi i e al., 2013). Acco ding o Ali Khan e
al. (2013), con en dimension is an impo an
ac o o in l uence he e ec i eness o IFR
as he i ems o IFR will help o de e mine he
impo ance and use ulness o IFR in Malaysia.
Also, he e a e se e al mo i a ions in engaging
IFR in Malaysia which a e an inc ease in
he anspa ency o dissemina ing company
in o ma ion, inc eased use o he in e ne
in e ms o p omo ion and he c ea ion o
a good b and name as well as he p ac ise o
good co po a e go e nance (Kiew & Salleh,
2011). The e a e no guidelines p esc ibing he
in o ma ion on co po a e websi es (Ali Khan &
Ismail, 2011a). Ye , he e a e s ill no manda o y
guidelines and equi emen o IFR disclosu e
in Malaysia (Hani a & Ab. Rashid, 2005).
The e o e, he aim o his s udy o examine he
EMPIRICAL RESEARCH OF USERS’
OPINIONS ON SELECTED ASPECTS
IN INTERNET FINANCIAL REPORTING
Mohd Noo Azli Ali Khan, Noo Azizi Ismail, Abbas Ma dani,
Edmundas Kazimie as Za adskas, A u as Kaklauskas
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pe cep ions o co po a e annual epo use s
owa ds selec ed aspec s o IFR in Malaysia.
The emainde o his a icle is o ganized
as ollows. A e iew o ele an li e a u e a e
p o ided in he nex sec ion. Sec ion wo
discusses he esea ch design, ollowed by
esea ch i ndings. Nex sec ion desc ibes web
usage and web con en analy ics. A summa y,
conclusion and sugges ions o u u e esea ch
a e p esen ed in he i nal sec ion.
1. In e ne Financial Repo ing and
Web Analy ics – Re iew o he
Li e a u e
IFR is an in e es ing, a ac i e and apid
g owing s udy i eld (Oyele e e al., 2003; Xiao
e al., 2005; Ali Khan, 2010; And ikopoulos
e al., 2013). Acco ding o S oel e al. (2012),
mos companies ha e s a ed o adop IFR
wi h he ad ance o in o ma ion echnology.
Al hough IFR a e wide issues o s udy, he
implemen a ion is di e en ac oss coun ies
in e ms o echnological de elopmen , and
he endency o use he in e ne o i nancial
epo ing pu poses and signi i can ly in l uenced
by he accoun ing sys em in each coun y (Alali
& Rome o, 2012). Ojah and Moko eli (2012)
s a ed ha poli ical en i onmen is one o he
ac o s which ha e con ibu ed o co po a e
adop ion o IFR. Resea che also p o ided
examples om s udies which indica ed ha
i e Eas Asia coun ies including Hong Kong,
Malaysia, Thailand, Singapo e and China which
lack complemen a y en i onmen in as uc u e
has no success ully adop ed IFR o e all. In
addi ion, IFR also p omo es anspa ency
abou in o ma ion disclosu e which enhances
manage ial decisions and he cong uency o
s akeholde s in he decision making p ocess
(Kel on & Penning on, 2012; Ojah & Moko eli,
2012).
Lyme (1999) indica ed ha , he e a e some
bene i s o he he in e ne o i nancial epo ing
such as l exibili y,speed, i s cheapness and
dynamism, On he o he hand, in e ne has
become e ec i e by p omo ing he use o
hype links and sea ch engines (Ojah & Mako eli,
2012). F om an in es o ’s pe spec i e, Kel on
and Penning on (2012) s a ed ha IFR is
ano he way o accessing in o ma ion which will
in l uence hei decision making p ocess based
on he in o ma ion disclosed. In addi ion, IFR
no only con ain he i nancial epo ing as pape
based epo s. I also epo s cu en si ua ions
in a o ma which enhances accessibili y and
l exibili y owa d use s (Ojah & Moko eli, 2012).
Bene i in e ms o cos associa ed wi h
he l exibili y p o ided by hype link make
IFR mo e in e ac i e and mo e use iendly
(Kel on & Penning on, 2012). O he han ha ,
he in oduc ion o a new echnology like IFR
equi es expe ise. Thus, he implemen a ion,
compliance and he quali y o he o e all
i nancial epo ing disclosu e may be less
e ec i e due o he lack o expe ise (S oel e
al., 2012; Shi i e al., 2013).
In he ecen yea s he impo an o IFR
issues ha e con i med in he li e a u e. Mo adi
e al. (2011) s a ed ha IFR is a new, signi i can
and in e es ing a ea o u u e s udies and
has become a ocus o u gen in es iga ion
a in e na ional le el (Al-H ayba , 2011).
The esul s o his eme ging s eam o IFR
esea ch sugges ha companies a e s ill in
he e y p elimina y s ages o in eg a ing hese
echnologies in o hei o e all communica ion
s a egy (Bow in, 2015). The le el o IFR o
Bu sa Malaysia lis ed companies s a ed om
48.27 pe cen o 78.16 pe cen wi h a min o
65.10 (Ali Khan, 2011a). Fu he mo e, he le el
o IFR among he public lis ed companies in
Bu sa Malaysia s a ed om 56.43 pe cen o
87.14 pe cen (Ali Khan, 2015). The disclosu e
i ems in he IFR disclosu e index checklis a e
based on he pe spec i e o use s o co po a e
annual epo (Ali Khan, 2016). Con en
analysis is used o p o ide on IFR p ac ices by
280 publicly aded i ms. Based on he Ali Khan
(2016), he le el o IFR o Bu sa Malaysia lis ed
companies s a ed om 56.55 pe cen o 86.21
pe cen .
Also, we analyze Web analy ics (Web usage
and Web con en analy ics) o disco e i nancial
and non- i nancial usage and con en pa e ns
om company websi es and o he sou ces o
Wo ld da a. Web usage analy ics has allowed
company c ea es be e buye ela ionship and
o do pe sonalized ma ke ing. Fo example, we
can used Open Web Analy ics (OWA). OWA
is an open sou ce web analy ics so wa e ha
anyone can use ha so wa e o ack and
analyse how people use you websi es and
applica ions.
Web Con en Mining ocuses on he aw
in o ma ion a ailable in Web pages. Sou ce
da a mainly consis s o ex ual da a in Web
pages. Many Web Con en mining sys ems
o he disco e ing company e enue ela ions
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om news (Ma e al., 2009), p edic ing company
(Tho leuch e e al., 2012), i m analysis (Cecchini
e al., 2010), opinion mining (Mo eo e al., 2012;
He e al., 2015; Ra i e al., 2015; Mos a a, 2013),
p edic abili y o i nancial (Nassi oussi e al.,
2014) and s ock (Schumake & Chen, 2009;
G o h & Mun e mann, 2011; Pa anjape-Vodi el
& Deshpande, 2013; Zhang e al., 2011; Fo uny
e al., 2014; Schumake e al., 2012) ma ke s,
compe i o analysis (Ma e al., 2011) ha e been
de eloped wo ldwide. The ollowing is a sho
desc ip ion o some o he Web Con en Mining
sys ems o disco e i nancial and non- i nancial
usage and con en pa e ns om company
websi es and o he sou ces o Wo ld da a.
Cecchini e al. (2010) o examine o
company ca as ophic i nancial e en s ha e
used i nancial ex . Cecchini e al. (2010) ound
ha aud (81.97%) and bank up cy (83.87%)
wi h he in eg a ed da a, ep esen ing ha
he ex o he managemen discussion and
analysis sec ions complemen s he quan i a i e
i nancial in o ma ion. Mos a a (2013) showed
he signi i can o some social ne wo ks such
as Facebook and Twi e ha been impo an
in ma ke ing i ms, public i ms and some
o he ex mining co po a ions. Mos a a (2013)
o assess he consume s‘ sen imen owa ds
u ilized he andom sample o 3516 wee s o
amus b ands like T-mobile, DHL, IBM, KLM
and Nokia.
Nassi oussi e al. (2014) e iew he ela ed
wo ks ha a e abou ma ke p edic ion based
on online- ex -mining and p oduce a pic u e
o he gene ic componen s ha hey all
ha e. Schumake and Chen (2009) examine
a quan i a i e s ock p edic ion sys em based
on i nancial news. Schumake and Chen (2009)
seek o con ibu e o he A izona Financial Tex
Sys em (AZFinTex ) by compa ing AZFinTex ’s
p edic ions agains exis ing quan i a i e unds
and human s ock p icing expe s.
Zhang e al. (2011) desc ibe ea ly wo k
ying o p edic s ock ma ke indica o s such
as Dow Jones, NASDAQ and S&P 500 by
analyzing Twi e pos s. Zhang e al. (2011)
measu ed collec i e hope and ea on each
day and analyzed he co ela ion be ween
hese indices and he s ock ma ke indica o s.
Zhang e al. (2011) ound ha emo ional wee
pe cen age signi i can ly nega i ely co ela ed
wi h Dow Jones, NASDAQ and S&P 500, bu
displayed signi i can posi i e co ela ion o VIX.
Fo uny e al. (2014) discuss how o gain insigh
in o ex -mining-based s ock p ice p edic ion
models in o de o e alua e, alida e and e i ne
he models.
2. Resea ch Design
The main goal o his pape o examines he
pe cep ions o co po a e annual epo use s
owa d in he se e al pe spec i es o IFR. To
da e, ew o p e ious pape s ha e been he
examine pe cep ions and a i udes o use s
o co po a e annual epo and compa e
hem o selec ed aspec s o IFR p o ided by
co po a ions in Malaysia. As a as we awa e,
his is among he i s s udy o e alua e and
compa e he selec ed aspec s o IFR o a ious
use -g oups in Malaysia.
Fo his objec i e we ha e collec ed equi e
da a h ough means o su ey ques ionnai e.
Responden s o his pape we e a co po a e
annual epo use . Mohd Isa (2006) s a ed
ha pe spec i es o annual epo use s
(academicians, business owne s, g adua es,
sha e b oke and o he public use s) a e
amilia wi h i nancial in o ma ion, accoun ing
in o ma ion and ha e knowledge o using he
in o ma ion in he co po a e annual epo . In
addi ion; academics a e selec ed o he p oxy
g oup o he co po a e annual epo use s
in ou pape because hey a e conside ed
o be esponsible o sys em o accoun ing
educa ion (Misheka y & Saudaga an, 2005).
Fu he mo e; audi o s a e selec ed because
hey using he i nancial in o ma ion, i nancial
epo ing and accoun ing in o ma ion o
i nalized he pe o mance o company. Mohd
Isa (2006) indica ed ha ; s uden s belie ed can
be as g oup o co po a e annual epo use s
because o hei academic specializa ion and
backg ound. Bank o i ce s a e ep esen a i es
o a ma ke economy (Mi sheka y &
Saudaga an, 2005). Mo eo e ; manage s we e
selec ed as ano he g oup because hey a e
conside s being esponsible o daily decision
making which in l uence on business p ocess.
(Ba sky & Ca anach, 2011; Moghadam e al.,
2013). The esponden s we e asked o indica e
hei opinions on a i e-poin Like scale
anging om 1 = no impo an a all o 5 = e y
impo an .
The na u e o his pape is explo a o y which
can conduc ed o examine he pe cep ion
o he p elimina y esponden s. We sen
ques ionnai e o he esponden s and a le e
o in oduce o s udy objec i e, con i den iali y
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o he esponden , a s amped add essed
en elope and a ailabili y o su ey esul upon
eques . Ques ionnai e o his s udy is used
o collec hei ideas on di e en IFR aspec s
including; ad an ages, disad an ages, ac o s
and bene i s. Fo examine he impo an o
IFR i ems he pe cep ion su ey o use -g oup
was conduc ed. Tab. 1 shows he esponden s
ques ionnai e which pooled opinions on he
le el o impo ance o each disclosu e i em in
he lis o con en and p esen a ion dimension.
308 ques ionnai es ou o 490 sen we e
e u ned (62.86 pe cen ).
The ques ionnai e o his s udy was
including wo sec ions. The i s sec ion was
ela ed o esponden s’ in o ma ion including
educa ion le el and majo , sex and age. The
second pa consis s o esponden s’ pe cep ion
owa ds ad an ages, disad an ages, ac o s
and bene i s o IFR.
To p o ide he s udy issues in he second
pa o he ques ionnai e, we employed he es
o K uskal-Wallis o he selec ed aspec s o IFR.
The K uskal-Wallis and Mann-Wi hney U es s
we e chosen as being app opia e o es ing he
hypo hesis in sec ion pa o he ques ionnai e
(simila wi h Mi sheka y & Saudaga an, 2005).
Mi sheka y and Saudaga an (2005) s a ed ha
o showing he weigh s o each g oup we e
simila , de e mine i he weigh ings o each g oup
we e simila , Mann-Wi hney U and K uskal-
Wallis es ha e used o es ing hypo hesis. Fo
examine he indi idual in o ma ion i ems such
ques ionnai e which gi e he decision making
pa ies like a s anda d se ing boa d, egula o
and p o essional schola s, a be e insigh
in o ag eemen and desi abili y o di e ence
ha would be be ween use s g oups and
in o each g oup (Mi sheka y & Saudaga an,
2005). The e o e, a K uskal-Wallis es was
used on second pa o he ques ionai e o
es he signi i can di e ences among he
use s o each in o ma ion i em. Fu he mo e,
a Mann-Wi hney U es was ca ied ou o i nd
di e ences be ween use -g oups (Mi sheka y &
Saudaga an, 2005).
3. Resea ch Findings
Acco ding o i ndings o Tab. 2, he pe cen ages
o 308 esponden s, 129 (41.9%) esponden s
we e male and emale we e 179 (58.1%)
esponden s. In e ms o academic quali i ca ion
140 esponden s had he diploma holde s,
deg ee we e 108 esponden s, mas e and
PhD we e 51 and nine espec i ely. 173 o
ou esponden s had 30 yea s, 34 o ou
esponden s we e be ween ages 41 o 50,
89 o esponden s had age be ween 31 o 40
yea s old, and 12 esponden s we e 51 abo e
yea s old. In e ms o academic specializa ion,
majo o 200 esponden s we e accoun ing,
33 esponden s we e i nance, 26 including
accoun ing and i nance, and 36 esponden s
we e business adminis a ion, nine o
esponden s we e in economic majo and ou
esponden s ocused on in es men . In e ms o
o ganiza ion posi ion, 106 o ou esponden s
we e manage s, academics esponden s we e
34, uni e si y s uden s we e 74, 54 wo k as
bank o i ce s (17.5%) and i nally 40 wo k as
audi o (13.0%).
In o de o de e mine he bene i s ha
may acc ue o companies which disclose hei
annual epo s o he public h ough in e ne ,
esponden s asked nine i ems o demons a ed
No. Use G oup Respond
1 Manage 106 ou o 150 = 67%
2 Academic 34 ou o 50 = 68%
3 Bank o i ce 54 ou o 110 = 49%
4 S uden 74 ou o 80 = 93%
5 Audi o 40 ou o 100 = 40%
To al 308 Malaysian esponden s
Sou ce: own esea ch on pe cep ions o In e ne Financial Repo ing
Tab. 1: Dis ibu ion o esponden s
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ag eemen s‘ le el o each i em shown. Tab. 3
ep esen ed; o e all he use s de e mined an
a e age use ulness mean abo e 3.5 o each
o nine i ems which shows all he i ems a e
signi i can and ele an .
Fu he mo e, a ac o eign in es o was
i s choice ollowed by p omo e company
wide o he public, a ac local in es o s,
p o ide wide co e age, a ac po en ial
cus ome s, enhance manage ial e i ciency
and discha ge accoun abili y a e signi i can a
one pe cen , while no i em was signi i can a
i e pe cen . Usually, by disclosing an annual
epo h ough in e ne all use s can access and
analyze he i nancial epo o ha company,
so i he company i nancial epo has a good
backg ound i will a ac o eign in es o s and
he possibili y o inc eased u u e p o i .
Findings o K uskal Wallis es demons a ed
ha ; he e a e di e ences in he use g oups’
pe cep ion abou whe he he appea ance o an
annual epo h ough in e ne would imp o e
he i nancial pe o mance o he company.
The es o Mann Whi ney indica ed ha he
pe cep ion on p epa ed is di e en om he
use pe cep ion. They di e ed based on he
p epa ed pe cep ion du ing p epa a ion o he
annual epo . Use s can ac ually use o he
annual epo s om o he companies as a guide
line o p epa e hei own annual epo ha hey
can hen imp o e and measu e. Subsequen ly,
unlike use pe cep ion hey only use annual
epo o analyze he da a wi hou making
co ec ions o adjus men s so i does no impac
hei pe cep ion ega ding whe he o no i will
imp o e i nancial pe o mance.
Demog aphic I em F equency Pe cen age
(%)
Gende Male 129 41.9
Female 179 58.1
Age < 30 yea s 173 56.2
31-40 yea s 89 28.9
41-50 yea s 34 11.0
51-60 yea s 12 3.9
Academic quali i ca ion Diploma 140 45.5
Deg ee / P o essional 108 35.1
Mas e 51 16.6
PhD 9 2.9
Majo ing Accoun ing 200 64.9
Finance 33 10.7
Accoun ing & Finance 26 8.4
In es men 4 1.3
Economic 9 2.9
Business Adminis a ion 36 11.7
Posi ion in o ganiza ion Academic esponden s 34 11
Uni e si y S uden s 74 24.0
Manage 106 34.4
Bank O i ce 54 17.5
Audi o 40 13.0
Sou ce: own esea ch on pe cep ions o In e ne Financial Repo ing
Tab. 2: P o i le o esponden
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Finally, p omo e anspa ency di e ed om
he p epa e s and use s on he dimension
conce ning bene i o he company. Rega ding
use pe cep ion company disclosu e o hei
annual epo o he public h ough in e ne
is he bes ac ion o allow use s a easie
me hod o analyze he company pe o mance
because o hei anspa ency. Consequen ly,
om p epa e s’ pe cep ion, p omo ion o
anspa ency o he public would inc ease he
secu i y p oblem ega ding he sa e y o hei
annual epo in u u e.
The s udy sough opinions om he
esponden s on he pe cep ion when disclose
annual epo h ough in e ne based on
bene i o use s. The lis o i ems namely
inc ease e i ciency and imeliness in achie ing
inexpensi ely, in o ma ion ega ding i nancial,
makes in es men decision p ocess as e ,
helps use s in he decision making p ocess
and easie , p o ides accessibili y o he use s,
p o ides ano he medium o disclosu e and
in o ma ion o company. The i ndings o his
sec ion we e p esen ed in Tab. 4.
We can see om he able ha six i ems
shown we e conside ed o g ea impo an a
all. Acco ding o his esul s we can p edic
he ac s ha disclose annual epo h ough
in e ne is being bene i cial o use s di ec ly
when hey used i . Thus, he esul ecei ed
shows all i ems a e ele ance and exceed he
mean 4.00 abo e.
Con inuously, in e es ingly he mos
impo an i em om he use s’ pe cep ion was
“inc ease e i ciency and imeliness in achie ing
o i nancial in o ma ion” wi h he highes in
his dimension mean 4.15. This indica es ha
use g oup e y conce n abou imeliness and
e i ciency o ge hei in o ma ion on annual
epo . I is no su p ising because mos o he
use g oup consis s o he wo king people and
some s uden s and hey need he in o ma ion
quickly ul i ll hei pu pose such as hei esea ch
and e c. Thus, he con en in annual epo mus
be upda ed and his is qui e di i cul o p epa e
and measu e i . Howe e , he upda ed annual
epo can a oid complain om use s and
main ain hei epu a ion.
The second mos impo an sou ce o
pe cep ion was make in es men decision
p ocess easie and as e . Acco ding o in es o
pe cep ion o example, he needed o analyze
he pe o mance o he company ha hey
wan o in es . Thus, o hose companies who
ha e enough in o ma ion and always upda e
hei annual epo , i will be easie and as e
o in es o o make decision in in es men o
business o ha company in he u u e. The
I em Mean S d. De . Rank K uskal Wallis es
χ2 Sig.
G ea impo ance
A ac o eign in es o s 4.30 .727 1 24.335 .000**
P omo e company mo e wide o he public 4.24 .754 2 36.183 .000**
A ac local in es o s 4.18 .732 3 26.810 .000**
P o ide wide co e age 4.18 .728 4 26.357 .000**
A ac po en ial cus ome s 4.13 .791 5 18.970 .001**
P omo e anspa ency 4.08 .790 6 9.274 .055
Enhance manage ial e i ciency 4.04 .820 7 30.158 .000**
Discha ge accoun abili y 4.04 .800 8 15.895 .003**
Mode a e impo ance
Imp o e i nancial pe o mance 3.92 .847 9 8.781 .067
Sou ce: own esea ch on pe cep ions o In e ne Financial Repo ing
*sig 5%; **sig 1% (1 = no impo an a all; 5 = e y impo an )
Tab. 3: Bene i s o company
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i ndings o K uskal Wallis es demons a ed
ha ; ega ding o use g oups ega ding he e
a e no signi i can di e ences among he
pe cep ion ela ed o he use s bene i s and
o he i ems can be classi i ed as ele ance and
signi i can .
This s udy a emp ed o ge opinions om
he esponden s on he signi i can o he
ac o s in l uences companies o p ac ice IFR.
The e a e 11 i ems asked o he esponden
and he esul shows only ou i ems a e
signi i can a one pe cen . Meanwhile, all i ems
a e ele ance wi h exceed mean 3.50 and only
h ee i ems exceed mean 4.00. The esul s
shows all i ems will ca ego ized as g ea
impo ance shown in Tab. 5.
In e es ingly, he mos impo an sou ce
o pe cep ion wi h he highes mean 4.21 is
o enhance co po a e image. I shows ha
company will ge good epu a ion i hey ad e ise
hei annual epo o he public because he
en i e use s can access hei in o ma ion easie
hus con ibu e o enhance co po a e image.
Pe haps, i will a ac people such as a ac
o eign in es o in Tab. 3 when he company
a e known in public. Nex , compe i o in he
indus y would con ibu e company o mo e
compe i i e o announce hei annual epo
h ough in e ne . As we know he main pu pose
o es ablish he company is o minimize he
weal h and make he p o i so o measu e i he
company mus gi e he bes se ice om o he
companies. Thus, compe i o s in he indus y
in l uence he companies he mos o p ac ice
IFR.
The esu ls o K uskal Wallis es ound ha
he e a e signi i can di e ences among use
g oup o hei iew o all he i ems in Tab. 5
and Mann Whi ney es ed illus a ed signi i can
di e ence ega ding he i ems show. The esul
o en i ems a e ca ego ized as signi i can om
he ele en i ems we e asked o he esponden s.
The s udy has also in es iga ed he ac o s
which con ibu ed o companies no p ac icing
IFR. Thus, esponden s we e asked o de e mine
he ex en o which he i ems a e ac o s which
mo i a e companies no o p ac ice IFR. The
ques ionnai e in oduced 11 possible easons
and he i ndings a e p esen ed in Tab. 6.
The Tab. 6 showed ha ; he e a e some
easons p esen ed o esponden s a e deemed
mode a ely impo an and only one i em as
o g ea impo ance. The i s h ee i ems a e
needed o company expe ise, equi ed o keep
upda e in o ma ion and conce n o e secu i y
o in o ma ion. Basically, implemen ing a new
sys em in o he company will incu i nancial
cos s and he equi ed expe ise o de elop
i . Thus, some companies don’ ha e onsi e
s a wi h he expe ise needed o ope a e he
sys em du ing and a e implemen a ion. The
leas impo ance eason was ea o losing
compe i i e ad an age.
The esul s o K uskal Wallis es showed
ha he e a e signi i can di e ence be ween he
use g oups only ega ding he mos impo ance
I em Mean S d. De . Rank K uskal Wallis es
χ2 Sig.
G ea impo ance
P o ides ano he medium o disclosu e 4.03 .715 6 14.403 .006**
P o ides in o ma ion o company,
inexpensi ely 4.10 .841 3 24.803 .000**
Makes in es men decision p ocess easie
& as e 4.13 .788 2 31.120 .000**
P o ides accessibili y o he use s 4.10 .784 4 29.160 .000**
Inc ease e i ciency and imeliness in achie ing
o i nancial in o ma ion 4.15 .770 1 27.547 .000**
Helps use s in he p ocess o decision making 4.06 .831 5 18.891 .001**
Sou ce: own esea ch on pe cep ions o In e ne Financial Repo ing
*sig 5%; **sig 1% (1 = no impo an a all; 5 = e y impo an )
Tab. 4: Bene i s o use s
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2, XX, 2017
Finance
I em Mean S d. De . Rank K uskal Wallis es
χ2 Sig.
G ea impo ance
Imp o e co po a e image 4.21 .751 1 17.222 .002**
Company speake wi h he de elop o
echnology 4.11 .813 2 15.228 .004**
Indus y Compe i o s 4.06 .774 3 20.634 .000**
Mode a e impo ance
Obliga ions o communi y 3.89 .764 4 5.505 .239
S abili y and imp o emen in sha e p ices 3.88 .855 5 17.696 .001**
Recei e go e nmen suppo 3.84 .841 6 7.322 .120
Ob ain unds om wide sou ces 3.82 .825 7 6.620 .177
Di ec o s desi e o engage IFR 3.80 .813 8 2.619 .623
Media a en ion 3.74 .887 9 3.271 .514
P essu es om s akeholde s 3.66 .868 10 3.061 .548
Win awa ds 3.46 .914 11 8.268 .082
Sou ce: own esea ch on pe cep ions o In e ne Financial Repo ing
*sig 5%; **sig 1% (1 = no impo an a all; 5 = e y impo an )
I em Mean S d. De . Rank K uskal Wallis es
χ2Sig.
G ea impo ance
Requi ed expe ise om he company 4.00 .783 1 2.732 .604
Mode a e impo ance
Too cos ly o se up and main ain 3.75 .926 5 2.247 .690
Conce n o e disclosu e o p op ie a y
in o ma ion 3.82 .795 4 6.780 .148
Do no wan o be oo anspa en 3.71 .958 6 7.069 .132
Need o keep in o ma ion upda ed o be o use 3.96 .788 2 9.363 .053
The e a e al e na i e o ms o ob aining
in o ma ion 3.70 .811 7 2.296 .681
Cos incu ed ou weigh bene i s o company 3.71 .958 8 1.655 .799
Po en ial legal liabili y 3.69 .875 9 5.387 .250
Conce n o e secu i y o in o ma ion 3.87 .887 3 3.966 .411
No legal equi emen 3.68 .936 10 15.290 .004**
Fea o losing compe i i e ad an age 3.57 .915 11 8.041 .090
Sou ce: own esea ch on pe cep ions o In e ne Financial Repo ing
*sig 5%; **sig 1% (1 = no impo an a all; 5 = e y impo an )
Tab. 5: Fac o s which in l uence companies o engage IFR
Tab. 6: Fac o s which in l uence a company no o engage IFR
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154 2017, XX, 2
Finance
eason, which is no legal equi emen . As a esul
only one i em which is no legal equi emen is
signi i can a 1%. Mos ly, all he companies a e
e y conce ned abou he secu i y o in o ma ion
and his leads a company o decide no o
p ac ice IFR. E en hough, companies y o
minimize he a ailabili y o sensi i e in o ma ion
abou he company on he in e ne , some imes
o he people can manipula e he da a wi hou
company knowledge.
In o de o de e mine he con en o annual
epo , i is impo an ha companies know he
ad an ages o disad an ages o dis ibu ing
hei annual epo h ough in e ne . This
ac ion is impo an o ensu e ha unexpec ed
p oblems do no a ise la e , and o companies
o be awa e o his po en ial p oblem in ad ance.
As shown in Tab. 7, all se en i ems display an
a e age use ulness mean abo e 3.5 on each o
he ad an ages o IFR. As a esul , esponden
ag ees ha he g ea es ad an age o IFR is
inc eased in o ma ion (downloadable) and
analysis (mean o 4.19). I is because he mo e
in o ma ion abou he company he use has,
he be e will be he analysis o he company.
The i nding shows ha he ad an age
o IFR in e ms o inc eased global each
and mass communica ion came second in
impo ance while na iga ional ease, inc eased
imeliness and up-da e abili y, and in e ac ion
and eedback we e eco ded as he mos
impo an wi h a mean exceeding 4.00. Thus,
all i ems shows signi i can amoun s compa ed
o o he i ems in Tab. 7.
K uskal Wallis es indica ed ha use
g oup di e ed signi i can ly in hei pe cep ion
abou he ad an age o IFR. The Mann Whi ney
es illus a ed ha e e y use has a di e en
pe cep ion ega ding he ad an age o IFR in
ela ion o p esen a ion l exibili y and isibili y
and cos bene i . I is because o he p epa e
hese c i e ia a e s ill signi i can bu o he use ,
i is no he main ad an age o IFR.
The s udy has also in es iga ed he
disad an ages o IFR in e ms o implemen a ion
and shows wha he cons ain deal wi h i .
Thus, he ques ionnai e in oduced six possible
easons and esponden s we e asked o ank
hem based in e ms o impo ance based on
hei pe cep ion and unde s anding. The esul s
a e shown in Tab. 8.
The i nding e ealed ha he six possible
easons in oduced o esponden s we e o
g ea o mode a e impo ance. Only one i em
was ca ego ized as o g ea impo ance namely
secu i y p oblems. As companies, ad e ise
hei annual epo o e he in e ne he da a
a e dange ously expose o anybody ha has
he skill o echnique o des oy he sys em o
sabo age he company o hei pu pose. All
he i ems in Tab. 8 a e s ill ele an when mean
exceeds 3.5.
K uskal Wallis es e ealed signi i can
di e ences be ween he use g oups and he
I em Mean S d. De . Rank K uskal Wallis es
χ2Sig.
G ea impo ance
Global each and mass communica ion 4.17 .755 2 22.776 .000**
In e ac ion and eedback 4.03 .801 5 5.720 .221
Timeliness and up-da e abili y 4.06 .771 4 12.929 .012*
Inc eased in o ma ion (downloadable) and
analysis 4.19 .718 1 12.664 .013
Na iga ional ease 4.09 .763 3 21.356 .000**
Mode a e impo ance
Cos bene i cial 3.91 .822 7 9.795 .044*
P esen a ion l exibili y and isibili y 3.95 .777 6 5.325 .256
Sou ce: own esea ch on pe cep ions o In e ne Financial Repo ing
*sig 5%; **sig 1% (1 = no impo an a all; 5 = e y impo an )
Tab. 7: Ad an ages o IFR
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Mohd Noo Azli Ali Khan, Ph.D.
Uni e si i Teknologi Malaysia
Facul y o Managemen
Depa men o Accoun ing and Finance
[email p o ec ed]
Noo Azizi Ismail, Ph.D.
Uni e si i U a a Malaysia
College o Business
O hman Yeop Abdullah G adua e School
o Business
[email p o ec ed]
Abbas Ma dani, Ph.D.
Uni e si i Teknologi Malaysia
Facul y o Managemen
Depa men o Business Adminis a ion
[email p o ec ed]
Edmundas Kazimie as Za adskas, Ph.D., D Sc.
Vilnius Gediminas Technical Uni e si y
Facul y o Ci il Enginee ing
Resea ch Ins i u e o Sma Building Technologies
[email p o ec ed]
A u as Kaklauskas, Ph.D., D Sc.
Vilnius Gediminas Technical Uni e si y
Facul y o Ci il Enginee ing
Depa men o Cons uc ion Economics
and P ope y Managemen
[email p o ec ed]
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Abs ac
EMPIRICAL RESEARCH OF USERS’ OPINIONS ON SELECTED ASPECTS IN
INTERNET FINANCIAL REPORTING
Mohd Noo Azli Ali Khan, Noo Azizi Ismail, Abbas Ma dani, Edmundas
Kazimie as Za adskas, A u as Kaklauskas
This s udy in es iga es he pe cep ions o use s o co po a e annual epo s in ela ion o selec ed
aspec s o in e ne i nancial epo ing. This s udy also analyzes Web analy ics (Web usage and
Web con en analy ics) o disco e i nancial and non- i nancial usage and con en pa e ns om
company websi es and o he sou ces o Wo ld da a. The case s udies submi ed in his a icle
pa ly demons a es he de eloped Web analy ics sys ems. To se e his pu pose, a ques ionnai e
was dis ibu ed o i e use g oups (academics, s uden s, manage s, bank o i ce s and audi o s).
F om he su ey, he analysis indica es ha a ac ing’s o eign in es o s, p omo ing he company
o a wide public, a ac local in es o s and p omo e wide co e age a e he ou mos impo an
bene i s o IFR o he company. The i ndings e ealed ha h ee main bene i s o he use s who
collec i nancial in o ma ion o companies ia hei websi e a e: inc eases imeliness and e i ciency in
ob aining i nancial in o ma ion, makes in es men decision p ocess easie and as e , and p o ides
in o ma ion abou a company inexpensi ely. P elimina y i ndings sugges ed h ee ac o s ha a e
pe cei ed as impo an by esponding i ms o engage in IFR: enhance co po a e image, company
elle wi h he echnology de elopmen , and compe i o s in he indus y. The i ndings also e ealed
h ee ac o s ha inhibi i ms om engaging in IFR: equi ed expe ise om he company, need
o keep in o ma ion up o da e o be o use and conce n o e secu i y o in o ma ion. The i ndings
also sugges ed inc eased in o ma ion and analysis, and global each and mass communica ion as
he mos impo an ad an ages om i nancial epo ing on he in e ne . On he o he hand, secu i y
p oblems, and cos and expe ise a e he bigges disad an ages o placing i nancial in o ma ion
on he in e ne . Finally, plausible implica ions o he i ndings o he s udy a e hen p esen ed and
a eas o u u e esea ch a e also p oposed. Taken oge he , hese esea ch ou comes make an
inc emen al con ibu ion o he exis ing i nancial epo ing li e a u e by p o iding use ul insigh s in o
ou knowledge o IFR especially o eme ging capi al ma ke s like Malaysia.
Key Wo ds: Use s’ opinions, selec ed aspec s, in e ne i nancial epo ing, web analy ics and
Malaysia.
JEL Classi i ca ion: M4.
DOI: 10.15240/ ul/001/2017-2-011
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