Determinants of internet financial reporting practices: Evidence from the UAE
The objective of this paper is to undertake an in-depth study of the Internet financial reporting (IFR) practices of UAE-listed companies. The survey is aimed at identifying IFR versus non-IFR companies, and the nature and extent of their IFR practices. Logistic regression analysis was undertaken to establish the determinants of IFR by the companies. The findings of this study identify the size, the leverage, industry sector, and profitability as the most important predictors of IFR adoption by UAE listed-companies. Larger companies with greater leverage are more likely to set up a website and use it for IFR than smaller less leveraged ones. It was noticed that 62% of IFR companies is from banking, investment & finance sector and from insurance sector as well. This study is expected to inform monetary authorities on this subject and give more support to these two industries, as they were peers for other sectors in the UAE. Furthermore, the outcome of this paper will provide policy-makers with insight into the factors that motivate IFR among corporate organizations.