Abstract

The use of the internet as a new platform for dissemination of corporate information is a recent, fast growing phenomenon and is expanding rapidly. Corporate information includes records of historical and financial data, descriptions of activities, information of the company, exposition of current situation and future plans, etc., that can be in multiple formats via website. Most early Internet Financial Reporting (IFR) research are either descriptive studies and exploratory in nature, or association studies addressing the determinants of IFR. IFR is known as new medium and technology which has been introduced in the area of financial reporting or disclosure. However, little attention has been given to investigate the attitudes and preferences of preparers of financial information especially in the Malaysian context. Therefore, this paper focuses on investigating the perceptions of preparers of financial information by using a survey mailed questionnaire. The findings of this study suggested three main benefits to companies that engage in IFR: attract foreign investors, promote company to the public, and attract local investors. The findings also revealed that three main benefits to the users who collect financial information of companies via their website are: increases timeliness and efficiency in obtaining financial information, helps users in the decision making process and provides another medium of disclosure. In conclusion, this study makes a positive contribution to enhancing our knowledge of IFR and disclosure practices in emerging capital markets, and provides a basis for the conduct of future research.

Key words: Benefit, preparers, financial statements, internet financial reporting, Malaysia.