Abstract:
Internet financial reporting (IFR), which facilitates availability of information
instantaneously to a global audience, leads to the increase in the market’s overall
transparency and encourages investment. However, IFR is likely to be subject to
greater managerial discretion as the practice is voluntary. Accordingly, corporate
governance mechanisms, which have become one of the most crucial issues due to
the accounting scandals and global financial crisis, may be important in explaining
the differences in levels of IFR disclosure between companies as well as countries.
There are four objectives of this study. The first objective of this study is to examine
the current level of IFR disclosure in listed financial companies in Gulf Cooperation
Council (GCC) countries. The second and third objectives of this study are to
examine the effect of corporate governance (board of directors’ effectiveness, audit
committee effectiveness, and ownership structure) and company type on the level of
IFR disclosure among these companies. The fourth objective of this study is to
examine the economic consequences of IFR disclosure on firm value in order to
understand the implications of increased IFR disclosure, especially for companies in
emerging countries.
