The Impact of Corporate Internet Reporting on

Firm Performance : A Study of Listed Bank

Finance and Insurance Companies in Sri Lanka
NAGARAJAH BIRASANTH
2015/BAD/022
BAD15022

DEPARTMENT OF ACCOUNTING
FACULTY OF MANAGEMENT STUDIES AND COMMERCE
UNIVERSITY OF JAFFNA
SRI LANKA
 Statement of the problem
• Firms’ stakeholders need fast and reliable financial information to satisfy
their requirements for timely decision making.
• Internet reporting can be used as a new information communication tool to
provide information quicker and timelier in better and more effective ways.
Jones (2003)
• Previous researches done in different countries, they found various results
where some concluded that there is a positive impact over the firm
performance, and some concluding that there is no impact over the firm
performance.
• There for this research study is conducted to test this scenario furthermore
in the SriLankan context specifically in the case of bank finance and
insurance sector by selecting a different time period (2017-2018).
 Research questions

1. Is there any impact of corporate internet reporting on firm

performance?

2. Is there any relationship between corporate internet

reporting and firm performance?
 Objective

Main objective
To examine the impact of corporate internet reporting on
firm performance

Secondary objective
To find out the relationship between corporate internet
reporting and firm performance
 Significance of the study
• The increasing use of the internet has created a new opportunity for
companies to disseminate different types of information to their current and
potential investors via the internet.
• Corporate internet reporting enables companies new opportunities to replace
and enhance traditional ways of investor and stakeholder communication
enabling disclosure of financial and investor related information to wider
audience where the specific needs of the information users would be met
and ensuring equitable access to information
• The findings of the research will be practically useful especially for
managers and other decision makers in bank finance and insurance sector to
make their decisions in a proper manner regarding investment.

Author’s
Chai J Sia, Rayenda Brahmana
and Gesti Memarista (2016)
Nawal Abdullah Al-ebrahem
(2017)
Adhikari & Tondkar (1992)
Jones & Xiao (2003)
Khan & Ismail (2011)
Street and Gray (2002)
Marston and Polei (2004)
Oyeler et al. (2003)
Literature Review
Findings
The findings showed that Corporate internet reporting has a significant effect
on firm performance.
They found corporate internet reporting has no significant impact on firm
performance.
Internet reporting is essential in the current information technology era
Found the results are mixed among corporate internet reporting and
profitability
Found that profitability is not associated with internet reporting.
 Research gap
• Most of the previous studies are conducted in developed countries on
corporate internet reporting and firm performance. (Malasiya , Egypt
and Saudi)
• Past literatures show that positive, negative , significant (Chai J Sia,
Rayenda Brahmana and Gesti Memarista 2016) and no relationship
(Nawal Abdullah Al-ebrahem 2017) between corporate internet
reporting and firm performance.
• From the above contradicting arguments about the previous findings,
clearly shows that there is a huge space to do the study again in Sri
Lanka to make new contribution to the extant literature in the area of
corporate internet reporting disclosure and firm performance.
 Conceptualization

Independent variable Dependent variable

Corporate internet Firm

reporting performance
(CIR)
ROA
Tobin’s Q
 Operationalization

Key
variables Indicators Measurement
concept
Corporate Index which is help to
Internet CIR Index calculate the corporate internet
Reporting reporting

It measures net income Net income *100

Return on Assets
produced by total assets. Total Assets
Firm’s
performance
Ratio between a physical
MVE+PS+DEBT
Tobin’s Q asset’s market value and its
TA
replacement value.
 Hypotheses
H1:There is a significant impact of Corporate internet
reporting on firm performance.

H2:There is a significant relationship between corporate

internet reporting and firm performance.
 Research Methodology

Research Method Quantitative Analysis

68 listed firms in CSE, Sri Lanka under the bank finance and
Sample
insurance sector.
Data sources Secondary Data (Annual reports of selected firms)

Year 2017- 2018

Mode of analysis Descriptive statistics , correlation and regression analysis

 Limitation

• This study concentrates only the bank finance and insurance sector
therefore the results can’t be applicable to all sector.
• This study also used secondary data which was collected through
secondary source there may be error in the data that may impact on
results.
• Limited number of time series (2 years) may lead to less
representation. The size of sample can be extended to further improve
efficiency of model.
 Expected contribution of the research

• It will be contributed to the listed firms in Sri Lanka to develop the

corporate internet reporting.
THANK YOU