What Shapes Internet Financial Reporting in Africa? Exploring Firm v Country Factors

Abstract

This study investigates the effect of corporate governance mechanisms and country-level factors on the extent of Internet Financial Reporting (IFR). We used a sample of 106 listed firms from five African countries. A financial reporting disclosure index was used to compute the aggregate IFR scores, which are made up of two components: content and presentation. Our results indicate that IFR relates to board size, firm size, country-level governance, economic development and index return. These results evidence the predominance of country-level factors over firm-specific factors in explaining the extent of IFR in Africa. It also shows that corporate governance mechanisms via board practices are insufficient to explain IFR in Africa. By further extending our analysis into the two components of IFR, we find that factors affecting the content and presentation dimensions are different. This study is among the first to investigate the extent of IFR in several African countries and adds to the existing evidence that has mainly focussed on firm-specific factors.

Citation

Ramdhony, D., Mooneeapen, O. and Bakerally, A. (2023), "What Shapes Internet Financial Reporting in Africa? Exploring Firm v Country Factors", Seifi, S. and Crowther, D. (Ed.) Corporate Resilience (Developments in Corporate Governance and Responsibility, Vol. 21), Emerald Publishing Limited, Leeds, pp. 151-172. https://doi.org/10.1108/S2043-052320230000021008