INTERNET FINANCIAL REPORTING: A SURVEY OF COMPANIES LISTED ON THE GHANA STOCK EXCHANGE

ABSTRACT

The primary objectives of this study are to: investigate the utilization of the

internet by the companies listed on the Ghana Stock exchange (GSE) for

financial reporting; to determine the company characteristics that influence the

information disclosure on the internet; and to investigate whether there is a

difference between the firms listed in terms oftype of financial information

disclosure on the internet. The methodology of the study was content analysis

of corporate web sites of companies listed on the GSE. The findings indicated

that although all listed companies operate websites, only 21(61%) of the

companies, which are predominantly in the banking and insurance sector

provide a complete set of financial information on the internet. Again, there

exist variations in terms of the amount of content(e.g. summary financial

statements vs. detailed financial statements),the style of presentation (e.g.

similar to paper-based reports vs inclusion of multi-media) and the manner in

which companies incorporate navigation aids (e.g. hyperlinks, search boxes

and others). Overall, the research finding is essential as it assists in informing

regulators about the characteristics of listed companies that are, and are not,

satisfying national and international investors‟ demand of updated/online

information. It also assists current and potential stakeholders to know what

drives corporate internet reporting in Ghana. Consequently, they may further

investigate and verify such reporting practices. In practice, online reporting

can be used as an effective tool for improving stakeholders‟ decision-making

process. Therefore, further research can be undertaken to examine the degree

to which online reporting provides value-relevant information for

stakeholders.