Abstract:
Corporates witnessed an intensifying concern about corporate disclosure
practices using the internet. As a result, corporates disclose financial and non financial information using corporate websites (i.e., Corporate Internet
Reporting-CIR). Accordingly, the paper aimed to examine the factors that
impact the level of CIR of listed companies in Sri Lanka. The research followed
a quantitative approach with a sample of 122 listed companies using a stratified
random sampling method. An empirical-based disclosure index was developed
containing three categories (i.e., Content, User Support and Presentation
Criterion) to measure the level of CIR. Further, corporate governance, firm size,
listing age, internationalization, profitability, liquidity, leverage, and industry
type were empirically sourced as determinants of adopting CIR. Collected data
were analysed using correlation analysis, followed by multiple regression
analysis. The correlation analysis revealed that there is a positive correlation
between corporate governance, firm size, leverage, and a negative correlation
between internationalization, and industry type which is classified based on
environmental sensitivity with CIR adoption. However, the regression analysis
revealed that the factors of firm size, leverage and internationalization have a
significant impact on the level of CIR adoption. Hence, these three factors are
considered as determinants of the CIR adoption level in Sri Lanka. The findings
added value to the persisting dearth of evidence on CIR research. Further, the
findings suggested extensive practical implications for corporates, decision makers, and regulators on CIR practices. Specifically, the findings provided an
understanding regarding corporate characteristics that impact CIR, which may
assist corporates to determine strategies for enhancing their disclosure
practices with the internet.
