The Use of the Internet for Corporate Reporting in the Mercosur (Southern Common Market)the Argentina Case
Document Type
Article
Publication Date
6-1-2012
Abstract
This study examines disclosure practices on the websites of companies listed on the Buenos Aires Stock Exchange. We perform content analysis to provide evidence on Internet reporting practices by 84 publicly traded firms. We also identify the characteristics of firms that communicate financial and non-financial information on the Internet. We find that companies in the financial and insurance, services and mining industries disclose more financial and non-financial information on their websites than companies in other industries. The average concentration of ownership is 68%, with 27% of the companies being controlled by foreign groups. Those companies with higher concentration disclose more financial and non financial information than companies with less concentration. Companies in the financial and insurance and service industries, utilize their websites for commercial purposes to facilitate access to customers to their accounts and also to sell services. This e-commerce usage of websites is less developed in other industries. About 71% of companies in the financial and insurance industry are included in the Merval25 index and are audited by Big 4. These companies are both larger in size and less profitable than companies in other industries. We find that profitability and leverage do not have significant effect on corporate Internet reporting practices and that growth has negative effect on corporate Internet reporting practices. We also find that companies in the mining sector provide significantly more disclosure about social responsibility indicating a desire to improve the public image of harming the environment. The results documented, herein, extend the literature on voluntary disclosure of financial and non-financial information using the Internet in emerging markets.
DOI
10.1016/j.adiac.2012.03.009
MSU Digital Commons Citation
Alali, Fatima and Romero, Silvia, "The Use of the Internet for Corporate Reporting in the Mercosur (Southern Common Market)the Argentina Case" (2012). Department of Accounting and Finance Faculty Scholarship and Creative Works. 128.
https://digitalcommons.montclair.edu/acctg-finance-facpubs/128