EFFECT OF CORPORATE GOVERNANCE PRACTICES ON CORPORATE INTERNET REPORTING IN THE HOTEL AND TRAVEL SECTOR IN SRI LANKA

Abstract

With the current COVID 19 pandemic, internet plays a major role in effectively communicating information to the general public on timely manner. It facilitates the improved availability of financial information and encourages investment decisions. Corporate governance is one of critical factor to attract more investments. Hence, this study aims to investigate the how Corporate Internet Reporting (CIR) of Sri Lankan Hotel and Travel sector companies are influenced by corporate governance structures. Hotel and Travel sector companies were selected as the sample and CIR was measured using an index comprising 87 indicators. Type of audit, audit committee size and board size were used as dimensions to measure the corporate governance practices of the company. Correlation and multiple regression analyses were used as analysis and forecasting techniques. Results revealed that the level of CIR in Hotel and Travel sector companies in Sri Lanka is low, as the average index become 21.27%. All the corporate governance dimensions were statistically significant and confirm that corporate governance will affect for CIR in the hotel and Travel sector companies in Sri Lanka. This study extends, as well as contributes to the existing literature by examining the impact of corporate governance on CIR in hotel and travel sector in Sri Lanka. Policies on Corporate governance should be improved to increase the level of CIR and it will pave the way towards sustainable development of the Hotel and Travel sector.