DOCSLIB.ORG

Comparative Analysis of Voluntary Internet Financial Reporting for Selected CEE Countries

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Comparative Analysis of Voluntary Internet Financial Reporting for Selected CEE Countries Recent Researches in Applied Economics and Management - Volume I Comparative analysis of voluntary Internet Financial Reporting for selected CEE countries MARIJANA BARTULOVIĆ Accounting and Finance Department University of Split, Department of professional studies Kopilica 5, 21000 Split CROATIA [email protected] IVICA PERVAN Accounting Department University of Split, Faculty of Economics Cvite Fiskovića 5, 21000 Split CROATIA [email protected] Abstract: Comparative research on the issue of voluntary Internet financial reporting was conducted on the sample of 91 companies whose securities are listed on one of the following capital markets: Zagreb Stock Exchange, Ljubljana Stock Exchange, Belgrade Stock Exchange, Sarajevo Stock Exchange and Banja Luka Stock Exchange. The purpose of this research was to determine the achieved level of voluntary Internet financial reporting on the observed capital markets. The highest level of Internet financial reporting measured through IFR score was reported in Slovenia and it amounted 23.25, than it is followed by Croatia with an average IFR grade of 21.27. Quite lower values of IFR score were noticed on the last three capital markets. For example, IFR score equals 9.75 on the Serbian capital market, on the Sarajevo Stock Exchange the average IFR score was 6.74 and the lowest level of transparency is noticed on Banja Luka Stock Exchange where the IFR score was only 3.61. The differences of the arithmetical means of the IFR scores for the observed countries were tested using Kruskal-Wallis test and conducted analysis indicates that among five countries there is a statistically significant difference in the level of Internet financial reporting measured through IFR score. Key-Words: voluntary reporting, Internet, comparative analysis, trends 1 Introduction a small number of papers dealing with Internet Financial statements are the primary source of financial reporting on the emerging capital markets publicly available information on listed company’s of Central and Eastern Europe. A basic performance and its business activities. Therefore, characteristic of these markets during the last transparent financial reporting is crucial for efficient decade is that they have been growing rapidly, functioning of capital markets. According to modern attracting a large number of domestic and foreign accounting frameworks the aim of financial investors so it is interesting to analyze the achieved reporting and disclosure is to provide useful level of Internet financial reporting on these information about company’s financial position, markets. Comparative Internet financial reporting profitability and cash flows. analysis is conducted on a sample of listed Today, in modern business environment internet companies that list their securities on the following and its applications are unavoidable tools for markets: Ljubljana Stock Exchange, Zagreb Stock disseminating financial information to investors and Exchange, Banja Luka Stock Exchange, Sarajevo other users. Since Internet is widely used for Stock Exchange and Belgrade Stock Exchange. informing investors and other users about business The basic purpose of this paper is to determine activities and financial performance of listed the achieved level of Internet financial reporting companies there is a large number of scientific measured through IFR score and compare it among papers which analyzed Internet financial reporting five selected markets. practices of listed companies in USA and EU. However, it is important to notice that there are still ISBN: 978-960-474-323-0 296 Recent Researches in Applied Economics and Management - Volume I 2 Prior research own Web site while only 48.33% of them use these The development of Internet technology and the pages for financial reporting. expansion of its use for voluntary financial reporting In another type of studies, so called comparative have stimulated a large number of academic studies research, authors analyze and compare Internet in this area. Research related to Internet financial financial reporting practices for two or more reporting can be classified in the following three countries. Use of Internet for investor relations was, categories: research related to practical application among others, analyzed in studies conducted by of Internet financial reporting in individual Deller et al. [6] and Geerings et al. [9]. Deller et al. countries, research related to comparison of Internet [6] analyzed the role of Internet in investor relations financial reporting practices between different and research was performed on a sample of largest countries and research into the factors that affect US, UK and German corporations. According to the financial reporting on the Internet in individual research results 91% of US corporations used the countries. Internet for investor relations and this practice is The first type of research, so called descriptive little less common for UK and German corporations research is focused on examining general where 72 or 71% of the companies has Investor characteristics of the use of Web for financial relation via the Internet. reporting in individual countries. Within the Comparative research for companies from five research results the authors provide data about the countries (USA, Canada, UK, Australia and Hong percentage of corporations that use Internet financial Kong) for the years 2001 and 2002 was carried out reporting, the types of financial reports issued by Allam and Lymer [1]. This study showed that (balance sheet, profit and loss account,...), the most of the companies (96100%) published their frequency of publishing the reports (annually, half- balance sheet, profit and loss account and cash flow yearly,...) and the format of published reports (pdf, report. Furthermore, the authors provided data that Excel,...). An example of an early study related to PDF was the most frequent format for the this topic is the research conducted by Brennan & presentation of reports while formats suitable for Hourigan [5] on a sample of Irish corporations. calculations (such as Excel) were found only in 12% According to the research results only 37% of listed of the observations. Geerings et al. [9] conducted Irish companies published their financial reports on research at a sample of 50 largest companies from the Internet. France, Holland and Belgium quoted on Euronext. Hedlin [11] founded out that the majority of According to the research results companies from Swedish firms listed on Stockholm stock exchange France and Holland use the Internet for investor did use financial reporting on the internet. Similar relations purposes more than Belgian companies. results have been reported by Hurtt et al. [12]. Furthermore, companies from all three countries Namely, at the sample of 100 biggest corporations presented their basic financial reports on the Net in the USA (Fortune 100) authors came to the result very frequently while some of the advantages of that 93 companies had their own Web site. Internet reporting (such as formats suitable for Furthermore, 74% of companies publishes balance calculations, mailing lists and multimedia) were less sheet on their Web pages and 70% of companies frequently used by Belgium companies. announces profit and loss account as well as cash Third type of studies dealing with Internet flow statement. financial reporting is focused on factors affecting As examples of descriptive research conducted in corporate decisions concerning their level of the world studies that were conducted by Internet financial reporting. As example for this type Gowthorpe & Amat [10] and Ettridge et al. [8] can of research, study conducted by Pirchegger and also be pointed out. In 2005 Pervan [15] conducted Wagenhofer [18] for Austrian and German quoted a research on a sample of 38 Croatian listed companies can be pointed out. Firstly, authors companies, and according to the research results evaluated the quality of website based on financial only 39.4% of the observed companies voluntary and non-financial criteria and then achieved grades published a set of five financial reports on their web for each company were used in regression analysis pages. Research on Internet financial reporting as the dependent variable. As independent variables practices for Romanian companies whose shares are the size of the company and the percentage of shares quoted on a stock exchange in Bukurest was traded on stock exchange were used. The research conducted by Bogdan et al. [2] and as the most results showed that for the sample of Austrian important research results authors provide the data companies Internet financial reporting quality was that 76.66% of the observed companies has their positively and significantly correlated with both independent variables while for the German sample ISBN: 978-960-474-323-0 297 Recent Researches in Applied Economics and Management - Volume I positive and significant correlation was confirmed sectors and market capitalization while the other 55 between Internet site quality and size of the factors are grouped in five categories. All factors company. Bonson & Escobar [3] analyzed voluntary together constitute an Internet Reporting Index. The disclosure on the Internet using a sample of 300 EU average Index value for the companies quoted on companies. The sample was formed out of the 20 Athens Stock Exchange was 30.30 and weighted largest companies by market capitalization from average score was 49.71. Also, among other, each EU country. Based on 23 criteria authors
Load more

Recommended publications
  • Analysing the UN Universal Declaration of Human Rights
    Committee: General Assembly Issue: The promotion, protection and enjoyment of human rights of the Internet Student Officer: Giulia Dargenio, Costanza Fisogni, Beatrice Foti I) Introduction The first operative clause resolution regarding the question of the promotion, protection and enjoyment of human rights of the Internet approved on the 5th of July 2018 by the UN Human Rights Committee declares: “Affirms that the same rights that people have offline must also be protected online, in particular freedom of expression, which is applicable regardless of frontiers and through any media of one’s choice, in accordance with article 19 of the Universal Declaration of Human Rights and of the International Covenant on Civil and Political Rights.” This main principle guides all the resolution and treaties approved by the UN committees regarding the matter. The digital age has brought immense new opportunities to accelerate human progress. However, this development has improved the population’s living conditions as well as worsening pre- existing criminal phenomena. Establishing a legislative framework in order to preserve individuals’ safety while respecting their fundamental rights of freedom of speech and expression should be the main focus in order to elaborate effective solutions to the issue. II) The question of human rights online (analysing the UN Universal Declaration of Human Rights) (Art 1, 2) Equality “All human beings are born free and equal in dignity and rights.” The internet holds the promise of being a great equaliser. On the internet, traditionally marginalised people and groups find a space to voice their opinions. They can find information and associate with other people and groups in order to achieve the change they have longed for.
    [Show full text]
  • The Impact of Internet on IPR – a Case Study of Music Industry in Croatia
    The Impact of Internet on IPR – A Case Study of Music Industry in Croatia Marta Bozina; Kosjenka Dumancic; Blazenka Knezevic University of Zagreb, Croatia Faculty of Economics and Business [email protected]; [email protected]; [email protected] ABSTRACT According to the International Telecommunication Union (ITU) there is a trend of rapid growth of Internet users in EU-candidate countries (Croatia, Romania, Bulgaria and Turkey), according to ITU reports, the number of Internet users has tripled since the year 2000. Nowadays, Internet is affecting and changing almost every industry in transitional countries. The impact is most obvious in industries which deal with goods that can be easily digitalized and distributed online. Due to a large number of Internet users, network effects and accessibility of different easy-to-use software tools both for digitalization and distribution, music seems to be most exposed to Internet theft and piracy. In this paper the case of Croatian music industry will be discussed together with the legal framework regarding the issue of digital music. Keywords: IPR, Internet, digital music, Croatia, legal framework, copyright Introduction Since the early eighties, digital revolution has been taking place and has affected every aspect of human life. It has changed existing industries, brought new ones, and developed new types of human behaviour. The possibility of music digitalization and its digital distribution has placed several legal issues in the focus. This paper will discuss the interference between technological changes and the legal framework that regulates IPR in music industry. The Croatian music industry and changes in the Croatian legal system regarding issues of music trade and sharing will be placed in the centre of interest.
    [Show full text]
  • Internet and the Elderly in Spain: Time Dedicated to Search and Communications
    Munich Personal RePEc Archive Internet and the elderly in Spain: Time dedicated to search and communications Molina, Jose Alberto and Campaña, Juan Carlos and Ortega, Raquel University of Zaragoza and IZA, University of Zaragoza, University of Zaragoza 10 October 2016 Online at https://mpra.ub.uni-muenchen.de/74419/ MPRA Paper No. 74419, posted 12 Oct 2016 07:26 UTC Internet and the elderly in Spain: Time dedicated to search and communications* José Alberto Molina University of Zaragoza, Spain IZA, Germany Juan Carlos Campaña University of Zaragoza, Spain Raquel Ortega University of Zaragoza, Spain Abstract Internet use reduces the isolation or exclusion of individuals in specific socio-economic groups and, consequently, increases the quality of life, with this being especially the case for the elderly. Knowing that the elderly are becoming particularly active in dedicating time to the Internet, we provide evidence of the time that Spanish individuals aged 65 and older dedicate to two online activities: search and communications. Thus, our work contributes to the central objective of the Digital Agenda for Europa, which sets out to ensure universal broadband coverage across the European Union. We estimate a simultaneous SUR model with data from the 4,036 individuals aged 65 years (inclusive) and older from the Spanish Time Use Survey for 2009-2010. Results indicate that being male has a positive influence on the time devoted to search on the Internet, whereas age has a negative effect. Time devoted to both Internet activities increases with higher levels of education and at the highest level of individual health. By contrast, a greater number of family members has a negative influence on the time spent on search and, more so, on communications.
    [Show full text]
  • Contribution to the Internet in Tourism and in the Research of Service Of
    JANUARY / JUNE 2010 35 Contribution to the Research of the Internet in the Service of Tourism Situation in Croatia and in the World Damir Demonja, Renata Cupic, Daniela Angelina Jelincic * Original scientific paper UDC 004.738.5:379.8(497.5) Received in May 2009 Presence of tourist destinations on the Internet today is a prerequisite for business sus- tainability. Recession period undoubtedly has an impact on better exploitation of the Internet potential as a comprehensive communication tool which will provide for more demanding customer a choice of desired services at any time, from anywhere. Internet is not only communication and marketing tool, but offers direct access to the client, and also has a global reach. The business which, even before the arrival of tourists in the destination, enables the choice of destinations, is the advantage compared to the other, "traditional" ways of tourist business. Still under-utilization of Internet capabilities in Croatia indicates the needfor business change. Joint action of all participants in the tourist sector, backed by the knowledge and skills of experts for Internet and communi- cation technology could gradually contribute to the achievement of the desired tourism progress. Keywords: Internet, communication and marketing tools, information, comprehensive- ness of service delivery, investment, one-stop-shop, world, Croatia, the European Union 1. Introduction Internet users, when searching the web, use the Internet search engines. According to Today the role of the Internet is almost surveys, among Internet search engines, unforeseeable.«Network of networks» has Google takes the first place on the list with a plenty of websites that have created contempo- market share of 53.6% and 200 million re- rary culture.
    [Show full text]
  • At the Fifty-Fifth Session of the General Assembly of the United Nations
    At the fifty-fifth session of the General Assembly of the United Nations, held in New York from September 6 to 8, 2000, the Millennium Declaration, a political document of the United Nations for the twenty-first century that establishes the goals for individual branches of interest to all the members of the international community as a whole and activities that should contribute to its realization, was passed by a unanimous vote. All the member nations of the United Nations are required to prepare a National Report on the Implementation of the Development Goals of the Millennium Declaration. Therefore, this obligation was also undertaken by the Republic of Croatia. The Millennium Development Goals on which the member nations of the United Nations are required to prepare reports on their implementation are as follows: 1. Eradicate extreme poverty 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve maternal health 6. Combat HIV/AIDS malaria and other diseases 7. Ensure environmental sustainability 8. Develop a global partnership for development Work on the preparation of these reports was conducted via five subgroups for the Millennium Development Goals, in which representatives of the relevant government institutions participated, as follows: First subgroup: Millennium Development Goal— Eradicate Extreme Poverty — Ministry of the Economy, Labor and Entrepreneurship — coordinator of the subgroup and author of the report on this topic; Ministry of Health and Social Welfare,
    [Show full text]
  • The Ethnographic Research of the Digital Divide
    DIGITAL DIVIDE IN ISTRIA A dissertation presented to the faculty of the College of Communication of Ohio University In partial fulfillment of the requirements for the degree Doctor of Philosophy Igor Matic August 2006 The dissertation entitled DIGITAL DIVIDE IN ISTRIA by IGOR MATIC has been approved for the School of Telecommunications and the College of Communication by Karen E. Riggs Professor, School of Telecommunications Gregory J. Shepherd Dean, College of Communication ABSTRACT MATIC, IGOR, Ph. D., August 2006, Mass Communication DIGITAL DIVIDE IN ISTRIA (209 pp.) Director of Dissertation: Karen E. Riggs This dissertation covers the Digital Divide phenomena in the Istrian region. Istria is a Northern Adriatic peninsula that is administratively divided between three European countries: Croatia (which covers approximately 90% of the peninsula), Slovenia (app. 7%), and Italy (app. 3%). In this dissertation my goal was to articulate the most influential theoretical frameworks that are used to explain the Digital Divide today and I try to give an explanation of the issue through ethnographic procedures. The goals of this research include the examination of the current Digital Divide debate, extension of the theory toward the local understanding and perception of this global phenomenon. Additionally, I wanted to identify different interpretations of the Digital Divide in three countries within one region and compare the differences and similarities in new technology usage and perceptions. Also, I was interested to see how age - which is described as one of the major Digital Divide factors - influences the relationships between older and younger generations, specifically relationships between parents and children, instructors, students and co-workers.
    [Show full text]
  • The World Internet Project International Report 6Th Edition
    The World Internet Project International Report 6th Edition THE WORLD INTERNET PROJECT International Report ̶ Sixth Edition Jeffrey I. Cole, Ph.D. Director, USC Annenberg School Center for the Digital Future Founder and Organizer, World Internet Project Michael Suman, Ph.D., Research Director Phoebe Schramm, Associate Director Liuning Zhou, Ph.D., Research Associate Interns: Negin Aminian, Hany Chang, Zoe Covello, Ryan Eason, Grace Marie Laffoon‐Alejanre, Eunice Lee, Zejun Li, Cheechee Lin, Guadalupe Madrigal, Mariam Manukyan, Lauren Uba, Tingxue Yu Written by Monica Dunahee and Harlan Lebo World Internet Project International Report ̶ Sixth Edition | i WORLD INTERNET PROJECT – International Report Sixth Edition Copyright © 2016 University of Southern California COPIES You are welcome to download additional copies of The World Internet Project International Report for research or individual use. However, this report is protected by copyright and intellectual property laws, and cannot be distributed in any way. By acquiring this publication you agree to the following terms: this copy of the sixth edition of the World Internet Project International Report is for your exclusive use. Any abuse of this agreement or any distribution will result in liability for its illegal use. To download the full text and graphs in this report, go to www.digitalcenter.org. ATTRIBUTION Excerpted material from this report can be cited in media coverage and institutional publications. Text excerpts should be attributed to The World Internet Project. Graphs should be attributed in a source line to: The World Internet Project International Report (sixth edition) USC Annenberg School Center for the Digital Future REPRINTING Reprinting this report in any form other than brief excerpts requires permission from the USC Annenberg School Center for the Digital Future at the address below.
    [Show full text]
  • Welcome Guide
    SEPTEMBER 2017 MAY 2019 MBA BARCELONA WELCOME GUIDE Welcome To Do’s Contents www.iese.edu/mba WELCOME TO IESE! WELCOME Dear Students, The aim is to provide you with the tools you need to adjust to life in Barcelona and IESE and to introduce We warmly welcome you to Barcelona and IESE. This you to the wealth of extracurricular activities that this Welcome Guide is a general guide to life at IESE and wonderful city has to offer. combines valuable tips from students with some practical The guide is by no means exhaustive. One of IESE’s information. The guide was created with the intention of advantages is its small size, which allows for making your move here as smooth as possible. personal contact among students, staff and faculty. So if you have any questions about topics that are not addressed here, please seek assistance from an IESE representative from MBA Admissions at [email protected] , call (T: +34 93 253 42 00) or stop in and see us in person. By definition, the Welcome Guide is a living document subject to annual updates. With the aim of improving and keeping the guide up to date, we welcome your feedback, comments and suggestions. We wish you a successful IESE experience. Itziar de Ros Director MBA Admissions IESE Business School A DAY IN THE LIFE OF AN MBA TO DO’S... BEFORE & AFTER COMING TO BARCELONA Here is a checklist to help you easily keep track of what you need to do: BEFORE COMING TO BARCELONA AFTER COMING TO BARCELONA Apply for your VISA.
    [Show full text]
  • 37 Chap IT5690
    Nation-Wide ICT Infrastructure Introduction 585 Nation-Wide ICT Infrastructure Introduction and its Leverage for Overall Development Predrag Pale University of Zagreb, Croatia Jasenka Gojšic CARNet, Croatia EXECUTIVE SUMMARY This paper describes ten years of efforts in introducing the state-of-the-art information and communication technologies (ICT) and development of ICT infrastructure on the national level. The aim of the project was to build Internet in Croatia and to foster its leverage in the broad range of activities of public interest in the society as a whole. The prime target group was academic and research community, as a vehicle for the overall development in the society. Croatian Academic and Research Network (CARNet) had been started as a project in 1991, and, after five years, it was transformed into a government agency. A broad range of activities had been started, from building and maintaining private nation-wide communica- tion and computer network to information services, user support, education, pilot projects and promotion. The academic community has been treated not only as the main customer, but also as an active partner in developing and providing services. CARNet has been fully funded by the state budget for ten years, without any participation of the commercial sector, domestic donations or international financial support. Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited. 586 Pale & Gojsic Although CARNet is treated as Croatian success story, recognized inside and outside of the country, the question is whether the initial goals have been realistic and achievements sufficient, considering the low penetration of ICT into the Croatian society.
    [Show full text]
  • What Do We Know About Children's Use of Online Technologies?
    Elisabeth Staksrud, Sonia Livingstone, Leslie Haddon and Kjartan Ólafsson What do we know about children’s use of online technologies?: a report on data availability and research gaps in Europe [2nd edition] Report Original citation: Staksrud, Elisabeth and Livingstone, Sonia and Haddon, Leslie and Ólafsson, Kjartan (2009) What do we know about children’s use of online technologies?: a report on data availability and research gaps in Europe [2nd edition]. EU Kids Online, Deliverable D1.1. EU Kids Online Network, London, UK. ISBN 9780853284055 This version available at: http://eprints.lse.ac.uk/24367/ Originally available from EU Kids Online Available in LSE Research Online: August 2012 The EU Kids Online network has received funding from the European Community’s Safer Internet Programme. The authors are solely responsible for the contents of this report. It does not represent the opinion of the Community and nor is the Community responsible for any use that might be made of information contained in it. © 2009 European Community Safer Internet Plus Programme and Sonia Livingstone LSE has developed LSE Research Online so that users may access research output of the School. Copyright © and Moral Rights for the papers on this site are retained by the individual authors and/or other copyright owners. Users may download and/or print one copy of any article(s) in LSE Research Online to facilitate their private study or for non-commercial research. You may not engage in further distribution of the material or use it for any profit-making activities or any commercial gain. You may freely distribute the URL (http://eprints.lse.ac.uk) of the LSE Research Online website.
    [Show full text]
  • Investor Relations on the Internet
    Investor Relations on the Internet: A survey of the Euronext zone Jorn Geerlings*, Laury Bollen**, Harold Hassink*** Maastricht Accounting and Information Management Research and Education Center University Maastricht June 2002 * Doctoral student, Faculty of Economics and Business Administration, University Maastricht ** Associate Professor of Information Management, Faculty of Economics and Business Administration, University Maastricht *** Professor of Auditing, Faculty of Economics and Business Administration, University Maastricht Investor Relations on the Internet: A survey of the Euronext zone Key words: Investor Relations, Internet, Euronext, Belgium, France, the Netherlands ABSTRACT This study investigates the investor relations activities on the Internet of companies listed on the Euronext stock exchange. For this purpose, the homepages of the 50 largest listed companies in each of the countries Belgium, France and the Netherlands were searched and screened for investor relations items. Results obtained by using a three stages model show that most companies in the Euronext zone are in the second stage of Internet investor relations. In this stage, information available through other sources is combined to better inform investors. In the third stage companies use the full interactive possibilities of the Internet for investor relations purposes. French and Dutch companies use the Internet for investor relations purposes more widely and more intensely than do Belgian companies. The study also revealed a size effect; large companies use the Internet for investor relations purposes more extensively than do smaller companies. This conclusion holds for each of the three countries. The leading companies in France and the Netherlands are either in the third stage of Internet investor relations or they are ready to enter it.
    [Show full text]
  • The Telefónica Group in 2003
    The Telefónica Group in 2003 A LEADER ON THE SPANISH AND PORTUGUESE-SPEAKING MARKETS, INTEGRATING GLOBAL COMMUNICATION SOLUTIONS, FOCUSING ON THE CUSTOMER AS THE CENTRE OF ITS ACTIVITY AND COMMITTED TO THE SOCIETY IN WHICH IT OPERATES A GROUP LEADER ON THE SPANISH market, adapting itself to the needs of each AND PORTUGUESE-SPEAKING MARKETS local society. Secondly, because it is the only operator that is incumbent in all the countries Telefónica is a world leader in the relevant to its business. And thirdly, because the telecommunications sector and the reference contribution to the gross operating margin operator in the Spanish and Portuguese- from markets different from its country of speaking markets. Its customer base now origin is the greatest among the major numbers close to 100 million customers, out of telecommunications companies in the world. a potential market of 500 million people. Telefónica is a leader in terms of the size of its A GLOBAL AND INTEGRATED activity.The Group is present on three continents, TELECOMMUNICATION SOLUTIONS OPERATOR performing significant operations in 15 countries, and it has activity of some kind in another 40 Over the last few years, the Telefónica Group countries.Through this presence,Telefónica has has concentrated on telecommunications, its over 43 million fixed lines and 55 million mobile core business, reinforcing its presence in fixed telephone lines. , Over 148,000 professionals work and mobile telephony.This is the reason why it in the Group to carry out this activity. has divested some non-strategic assets in 2003. Telefónica is also the leader on the financial As a result, the new business model is geared to markets.
    [Show full text]