Internet reporting, social media strategy and firm characteristics – an Australian study

Yi Xiang and Jacqueline L. Birt

Accounting Research Journal, 2020, vol. 34, issue 1, 43-75

Abstract: Purpose - This paper aims to investigate internet reporting and social media strategies by Australian firms. This study looks at the extent of internet reporting and considers firm characteristics associated with disclosing information on the internet. This research is timely as in the past decade, this paper has witnessed the rapid growth of technologies such as the internet and social media and their subsequent impact on business and the economy. Design/methodology/approach - This paper constructs a disclosure index featuring a wide range of both financial and non-financial disclosures including social media strategy. This study then investigates the firm characteristics associated with the level of internet disclosure. Findings - This paper finds that a firm’s internet reporting is associated with firm size, financial performance and analysts’ coverage but not associated with the percentage of independent board members. A firm’s social media strategy is associated with firm size and its environmental, social and corporate governance (ESG) ranking. Practical implications - The findings can help firms improve their internet reporting disclosures by providing a comprehensive list of disclosures that could benefit users of financial reports. It also helps standard setters and regulators understand some of the firm factors related to internet reporting and provide guidance for standard setters to consider in developing best practice internet reporting standards. Originality/value - The research features the top 100 Australian companies’ internet disclosures in 2018 and also includes social media strategy. The results highlight that there is room for improvement with firms’ internet disclosure. By constructing a comprehensive index, this study provides guidance for standard setters to consider in developing best practice internet reporting standards.

Keywords: Voluntary disclosures; Social media; Financial reporting; Disclosure; Internet reporting; ESG reporting (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:arjpps:arj-09-2018-0154

DOI: 10.1108/ARJ-09-2018-0154

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