Author: PIUS DAGADU
ABSTRACT
Purpose: The internet revolution has altered the traditional flow of corporate, marketing and customer support information to stakeholders. This has lead to the use of firms’ websites to disseminate information about the financial performance of the corporations. This study examines the prospects and challenges of the new phenomenon of Internet Financial Reporting in Ghana.
Methodology/ Approach: The survey technique was adopted for the study. This technique was adopted since it has the potential to provide us with a lot of information obtained from of individuals. The primary source of data was collected through a large sample of individuals. The primary source of data was collected through administration of questionnaires and obtained through semi-structured interviews.
Findings: Findings indicated that a greater proportion of firms do have their own corporate website while online reporting is just catching on with firms in Ghana. Findings also show that the text format is predominantly used. Elimination of the substantial cost of printing and posting of annual reports, accessibility of information by a much wider audience than more conventional means of communication permit, up-to-date information through the regular maintenance of web sites are among some of the prospects while some challenges include cost of adoption and implementation and lack of standardized data amongst firms.
Research Implications: The study is one of a few studies that aim to investigate Internet Financial Reporting with focus on a developing economy context. Firms in developing economies looking to develop capabilities and better leverage their e-resources to build competitive advantage should focus on adopting Internet Financial Reporting in maximizing their firms’ value.
Key Words: Internet, Internet Financial Reporting, Corporate Reporting
