 Financial managers’ perceptions on firm characteristics and internet financial reporting disclosure among selected financial institutions in RwandaVédaste Habamenshi and
Dr. Thomas K Tarus
International Journal of Research and Innovation in Social Science, 2022, vol. 6, issue 8, 716-724 Abstract: Internet financial reporting has been the major platform of information dissemination among the corporations as it offers the potential for companies to reach a wider range of users without time limits, or boundaries at more cost-effective. However, the adoption of IFR disclosure among African countries is still low; and it has not received much attention from researchers in the context of Rwanda. Therefore, this research assessed the relationship between firm characteristics and internet financial reporting disclosure among financial institutions in Rwanda. Three theories guided this research namely: diffusion of innovation theory, agency theory and signalling theory guided the research. As methodology applied, the research design was a mix of descriptive, empirical and correlational research design using qualitative and quantitative approaches. A sample of 115 employees from 23 sampled companies were randomly selected from a total population of 30 insurance and banking sector companies accredited by the National Bank of Rwanda. The data was analysed using IBM SPSS Statistics. As key findings, descriptive statistics indicated that the adoption of IFR disclosure among selected financial institutions in Rwanda is low as the overall rate of IFR disclosure is estimated at 25% where IFR user support index is most developed (36.0%), followed by IFR technology (27.6%). IFR content disclosure is low 26.0% while IFR timeliness is too low 10.4%. The regression results indicated that 51.8% of variance in dependent variable were explained by independent variables. The regression coefficients revealed that firm size was positive and significant to IFR disclosure (β1= 0.267; p= 0.001); profitability of the firm was positive and significant to IFR disclosure (β2= 0.158; p= 0.006); leverage of the firm was positive but not significant to IFR disclosure (β3= 0.042; p= 0.391); liquidity of the firm was positive and significant to IFR disclosure (β4= 0.269; p= 0.002); firm ownership structure was positive but not significant to IFR disclosure (β5= 0.006; p= 0.231). The research conclude that confidence in financial markets is needed by the users of financial reporting, including regulators and investors; such confidence can be obtained by disclosing more information on the internet. The research recommends financial institutions improving the contents of information disclosed, adopting eXtensible Business Reporting Language (XBRL) technologies, providing updated information, and developing investor relationship interface. The National Bank of Rwanda as the regulator is recommended to motivate IFR disclosure among financial institutions for contributing to the development of the country by showing their real faces to Rwandan as well as foreign investors. Date: 2022 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:6:y:2022:i:8:p:716-724 Access Statistics for this article International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS) |
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