Internet Financial Reporting in Malaysia: The Preparers ’ View

This paper reports the opinion and awareness of the Internet financial reporting (IFR) from the preparers ’ perspectives and examines the individual firm motives to engage the IFR. The researchers interviewed ten senior managers using semi-structured and in-depth questionnaires to seek their views and opinions on IFR issues. Among the three main motivations to engage in IFR are: first, companies want to be more transparent in disseminating company information. Second, the companies use the Internet to promote their products and services to create a good brand name in the industry. Lastly, these companies are a strong believer of good corporate governance best practices in promoting greater transparency. 90 % of the respondents claimed ownership structure influenced IFR, and 70% of the respondents agreed industry members and firm size influenced such reporting practice. As for corporate governance mechanisms, only 34 % of the respondents agreed corporate governance influenced IFR. This paper bridges the gap by interviewing preparers concerning influences of corporate governance and ownership structures on IFR. Among the more significant issues highlighted by the respondents are the security of the Web site, timeliness of reporting and adoption of XBRL