Journal of Contemporary Issues in Business and Government

Abstract

The Internet offers a new medium for presentation of financial reports by companies. New
applications, new users and faster connections have spurred the Internet to become an
important medium for communication, information dissemination and commerce. The need
for information disclosure stems from market failures caused by low disclosure of relevant
information for users resulting in information asymmetry. The voluntary nature of
information provided on the internet by the publicly listed companies has resulted in nonuniformity
in their disclosures.
The objective of the present study is to test whether is any significant influence of
market capitalization, debt-asset ratio, financial performance, profit level, and stock price on
Internet Financial Reporting (IFR) Disclosure Index and the tests are conducted by measuring
IFR index of as a dependent variable and the above five independent variables in 32 banking
sample companies selected from BSE-500. The results indicated that IFR index of Indian
banking sector was very strongly associated with market capitalization.