There is an obvious trend of increase in the number of companies having websites around the world. In addition to sales and customer service materials, a growing percentage of those companies are placing business reporting information, including financial data, on their sites. It shows that there is a development in corporate online financial reporting. The Web-based reports have great potential to be more than electronic versions of conventional paper reports. The question is whether firms actually take the opportunity to reap those benefits by being in higher stages of web financial reporting. There are three stages of Web financial reporting; stage 1 – duplicates the printed financial statements in “electronic paper”; stage 2 – uses HTML formatting and permits data downloading; stage 3 – uses enhancements that cannot be incorporated in printed documents. Accordingly, this paper tries to discuss the preliminary result of Web financial reporting by identifying the current stages of web financial reporting in Malaysia. Comparisons are made with prior studies in Malaysia to study whether there are improvements in listed firms’ practices.
Keyword: Web financial reporting, Internet, stage of development, voluntary disclosure
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