A Survey of Internet Financial Reporting in Bahrain.
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Published
Mar 1, 2008
Abstract
This paper investigates the extent and variety of internet financial reporting (IFR) by companies listed on the Bahrain Stock Exchange (BSE). While IFR is fast becoming the norm in western countries, there is little empirical evidence of the phenomenon in the Middle East. This paper attempts to fill some of the gap in the literature by providing evidence of IFR practices in Bahrain. The 49 companies listed on the BSE were investigated to ascertain whether they maintain websites and/or if these sites are being used for communicating financial information. Only 40 companies were found to operate websites, with only 27 engaging in IFR. The results indicate that IFR is spreading in Bahrain and there are many opportunities and challenges for all stakeholders in corporate reporting. The study highlights the challenge si opportunities for IFR in the Middle East, as well as a number of areas for further study.
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Keywords
Financial Report
References
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• Boritz, J. and No, W. (2005), "Security in XML-Based Financial Reporting Services on the Internet", Journal of Accounting and Public Policy, Vol. 24 No.1, pp. 11-35.
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• Debreceny, R. and Gray, G. (200 1 ), "The Production and Use of Semantically Rich Accounting Reports on the Internet: XML and XBRL", International journal of Accounting Information Systems, No.2, pp. 47-74.
• Debreceny, R., Gray, G. and Rahman, A. (2002), "The determinants of Internet financial reporting", Journal of Accounting and Public Policy, Vol. 21 No. (4/5), pp. 371- 394.
• Deller, D., Stubenrath, M. and Weber, C. (1999), "A Survey on the Use of the Internet for Investor Relations in the USA, the UK and Germany", The European Accounting Review, Vol. 8 No.2, pp. 351-364.
• Ettredge, M., Richardson, V., and Scholz, S. (200 1 ), "The Presentation of Financial lnformation at Corporate Websites", International Journal of Accounting Information Systems, Vol. 2, pp. 149-168.
• Ettredge, M., Richardson, V., and Scholz, S. (2002), "Dissemination of information for investors at corporate Web sites", Journal of Accounting and Public Policy, Vol. 21 No. (4/5), pp. 357-369.
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• Gowthorpe, C. and Amat, 0. (1999), "External Reporting of Accounting and Financial Information via the Internet in Spain", The European Accounting Review, Vol. 8 No. 2, pp. 365-371.
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• Green, G. and Spaul, B. (1997), "Digital Accountability", Accountancy, International Edition, May, 49-50.
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• Hodge, F. (2005), "Hyperlinking Unaudited Information to Audited Financial Statements: Effects on Investor Judgements", The Accounting Review, Vol. 76 No.4, pp. 675- 691.
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• Khadaroo, I. (2005), "Corporate Reporting on the Internet: Some Implications for the Auditing Profession", Managerial Auditing Journal, Vol. 20 No.6, pp. 578-591.
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• Lymer, A. (1999), "The Internet and the Future of Corporate Reporting in Europe", The European Accounting Review, Vol. 8 No.2, pp. 289-301.
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• Marston, C. (2003), "Financial Reporting on the Internet by Leading Japanese Companies", Corporate Communication: An International Journal, Vol. 8 No. 1, pp. 23-34.
• Marston, C. and Polei, A. (2004), "Corporate Reporting on the Internet by German Companies", International Journal of Accounting Information Systems, Vol. 5, pp. 285-311.
• McCafferty, J. (1995), "Investor Relations: How Much to Reveal Online", CFO, December, p. 12.
• Oyelere, P., Laswad, F. and Fisher, R. (2003), "Determinants of lnternet Financial Reporting by New Zealand Companies", Journal of International Financial Management and Accounting, Vol. 14 No.1, pp. 26-63.
• Oyelere, P ., Mohamed, E. and Al Shidi, S. (2006), "Accountability and Transparency through the Internet: A Study ofGCC Corporate Governance Practices", Proceedings of the 6th Annual Hawaii International Conference on Business,25-28 May, Honolulu, Hawaii, USA.
• Pirchegger, B. and Wagenhofer, A. (1999), "Financial Information on the Internet: A Survey of the Homepages of Austrian Companies", The European Accounting Review, Vol. 8 No. 2, pp. 383-395.
• Ravlic, T. (2000), "Wild Wild Web", Australian CPA, August, pp. 26-30.
• SEC (Securities and Exchange Commission) (2002), Final Rule: Acceleration of Periodic Report Filing Dates and Disclosure Concerning Website Access to Reports, Securities and Exchange Commission, available at: www.sec.gov.
• SEC (Securities and Exchange Commission) (2003a), Final Rule: Disclosure Required by Sections 406 and 407 of the Serbanes-Oxley Act of 2002, Securities and Exchange Commission, available at: www.sec.gov.
• SEC (Securities and Exchange Commission) (2003b ), Final Rule: Mandated Electronic Filing and Website Posting for Form 3,4 and 5, Securities and Exchange Commission, available at: www.sec.gov.
• Smith, B. and Peppard, D. (2005), "Internet Financial Reporting: Benchmarking Irish PLCs Against Best Practice", Accountancy Ireland, Vol. 37 No. 6, pp.22-24
• Trites, G. (1999), The Impact of Technology on Financial and Business Reporting, Canadian Institute of Chartered Accountants.
• Trites, G. and Sheehy, D. (1997), "Electronic Disclosure Making a Hit on the Net", CA Magazine, March, p. 10.
• Wagenhofer, A. (2003), "Economic Consequences of Internet Financial Reporting", Schmalenbach Business Review, Vol. 55, October, pp. 262-279.
• Wallman, S. (1997), "The Future of Accounting and Financial Reporting, Part 5: Access Accounting", Accounting Horizon, Vol. 11 No.2, pp. 103-116.
• Wickramasinghe, N. and Lichtenstein, S. (2006), "Supporting Knowledge Creation With E-mail", International Journal of Innovation and Learning, Vol. 3 No.4, pp. 416- 426.
• Wickramasinghe, N. (2006), "Knowledge Creation: A Meta-Framework", International Journal of Innovation and Learning, Vol. 3 No.5, pp. 558-573.
• Xiao, J., Yang, H. and Chow, C. (2004), "The Determinants and Characteristics of Voluntary Internet-Based Disclosures by Listed Chinese Companies", Journal of Accounting and Public Policy, Vol. 23 No.3, pp. 191-225.
• Ashbaugh, H., Johnstone, K. and Warfield, T. (1999), "Corporate reporting on the Internet", Accounting Horizons, Vol. 13 No.3, pp. 241-257.
• Baker, C. R. and Wallage, P. (2000), "The Future of Financial Reporting in Europe: Its Role in Corporate Governance", The International Journal of Accounting, Vol. 35 No.2, pp. 173-187.
• Boritz, J. and No, W. (2005), "Security in XML-Based Financial Reporting Services on the Internet", Journal of Accounting and Public Policy, Vol. 24 No.1, pp. 11-35.
• Chan, W.K. and Wickramasinghe, N. (2006), "Using the Internet for Financial Disclosures: The Australian Esxperience", International Journal of Electronic Finance, Vol. 1 No.l,pp.ll8-150.
• Craven, B. and Marston, C. (1999), "Financial reporting on the Internet by leading UK companies", The European Accounting Review, Vol. 8 No.2, pp. 321-333.
• Debreceny, R. and Gray, G. (200 1 ), "The Production and Use of Semantically Rich Accounting Reports on the Internet: XML and XBRL", International journal of Accounting Information Systems, No.2, pp. 47-74.
• Debreceny, R., Gray, G. and Rahman, A. (2002), "The determinants of Internet financial reporting", Journal of Accounting and Public Policy, Vol. 21 No. (4/5), pp. 371- 394.
• Deller, D., Stubenrath, M. and Weber, C. (1999), "A Survey on the Use of the Internet for Investor Relations in the USA, the UK and Germany", The European Accounting Review, Vol. 8 No.2, pp. 351-364.
• Ettredge, M., Richardson, V., and Scholz, S. (200 1 ), "The Presentation of Financial lnformation at Corporate Websites", International Journal of Accounting Information Systems, Vol. 2, pp. 149-168.
• Ettredge, M., Richardson, V., and Scholz, S. (2002), "Dissemination of information for investors at corporate Web sites", Journal of Accounting and Public Policy, Vol. 21 No. (4/5), pp. 357-369.
• F ASB (Financial Accounting Standard Board) (2000), Electronic Distribution of Business Reporting Information, Business Reporting Research Project, available at: http://www.fasb.org/brrp/brrpl.pdf.
• Fisher, R., Oyelere, P. and Laswad, F. (2003), "Corporate Reporting on the Internet: Audit Issues and Content Analysis of Practices", Paper presented at the 2003 Annual Conference of the British Accounting Association, Manchester, April23-25.
• Fisher, R., Oyelere, P. and Laswad, F. (2004), "Corporate Reporting on the Internet: Audit Issues and Content Analysis of Practices", Managerial Auditing Journal, Vol. 19 No.3, pp. 412-139.
• Gowthorpe, C. and Amat, 0. (1999), "External Reporting of Accounting and Financial Information via the Internet in Spain", The European Accounting Review, Vol. 8 No. 2, pp. 365-371.
• Gowthorpe, C. and Flynn, G. (2001), Smaller Listed Companies' Financial Reporting on the Internet 2000/2001, Institute of Chartered Accountants in England and Wales, London, UK.
• Gowthorpe, C. (2004), "Asymmetrical Dialogue? Corporate Financial Reporting Via the Internet"", Corporate Communication :_An International Journal, Vol. 9 No. 4, pp. 283-293.
• Green, G. and Spaul, B. (1997), "Digital Accountability", Accountancy, International Edition, May, 49-50.
• Redlin, P. (1999), "The Internet as a Vehicle for Investor Relations: the Swedish Case", The European Accounting Review, Vol. 8 No.2, pp. 373-381.
• Hodge, F. (2005), "Hyperlinking Unaudited Information to Audited Financial Statements: Effects on Investor Judgements", The Accounting Review, Vol. 76 No.4, pp. 675- 691.
• Jones, M. and Xiao, J. (2004), "Financial Reporting on the Internet by 2010: A Consensus View", Accounting Forum, Vol. 24, pp. 237-263.
• Khadaroo, I. (2005), "Corporate Reporting on the Internet: Some Implications for the Auditing Profession", Managerial Auditing Journal, Vol. 20 No.6, pp. 578-591.
• Laswad, F., Fisher, R. and Oyelere, P. (2005), "Determinants of voluntary Internet financial reporting by Local Government Authorities", Journal of Accounting and Public Policy, Vol. 24, pp. 101-121.
• Laswad, F., Oyelere, P. and Fisher, R. (2000), "Internet Financial Reporting, Opportunities and Challenges", African Finance Journal, Vol. 2 No.2, pp. 40-46.
• Louwers, T., Pasewark, W. and Typpo, E. (1996), "Silicon Valley meets Norwalk", Journal of Accountancy, No.l86, pp. 20-24.
• Lymer, A. (1999), "The Internet and the Future of Corporate Reporting in Europe", The European Accounting Review, Vol. 8 No.2, pp. 289-301.
• Lymer, A., Debreceny, R., Gray, G. and Rahman, A. (1999), Business Reporting on the Internet, International Accounting Standards Committee, London, November.
• Lymer, A., and Debreceny, R. (2003), "The Auditor and Corporate Reporting on the Internet: Challenges and Institutional Responses", International Journal of Auditing, Vol. 7 No.2, pp. 103-120.
• Marston, C. (2003), "Financial Reporting on the Internet by Leading Japanese Companies", Corporate Communication: An International Journal, Vol. 8 No. 1, pp. 23-34.
• Marston, C. and Polei, A. (2004), "Corporate Reporting on the Internet by German Companies", International Journal of Accounting Information Systems, Vol. 5, pp. 285-311.
• McCafferty, J. (1995), "Investor Relations: How Much to Reveal Online", CFO, December, p. 12.
• Oyelere, P., Laswad, F. and Fisher, R. (2003), "Determinants of lnternet Financial Reporting by New Zealand Companies", Journal of International Financial Management and Accounting, Vol. 14 No.1, pp. 26-63.
• Oyelere, P ., Mohamed, E. and Al Shidi, S. (2006), "Accountability and Transparency through the Internet: A Study ofGCC Corporate Governance Practices", Proceedings of the 6th Annual Hawaii International Conference on Business,25-28 May, Honolulu, Hawaii, USA.
• Pirchegger, B. and Wagenhofer, A. (1999), "Financial Information on the Internet: A Survey of the Homepages of Austrian Companies", The European Accounting Review, Vol. 8 No. 2, pp. 383-395.
• Ravlic, T. (2000), "Wild Wild Web", Australian CPA, August, pp. 26-30.
• SEC (Securities and Exchange Commission) (2002), Final Rule: Acceleration of Periodic Report Filing Dates and Disclosure Concerning Website Access to Reports, Securities and Exchange Commission, available at: www.sec.gov.
• SEC (Securities and Exchange Commission) (2003a), Final Rule: Disclosure Required by Sections 406 and 407 of the Serbanes-Oxley Act of 2002, Securities and Exchange Commission, available at: www.sec.gov.
• SEC (Securities and Exchange Commission) (2003b ), Final Rule: Mandated Electronic Filing and Website Posting for Form 3,4 and 5, Securities and Exchange Commission, available at: www.sec.gov.
• Smith, B. and Peppard, D. (2005), "Internet Financial Reporting: Benchmarking Irish PLCs Against Best Practice", Accountancy Ireland, Vol. 37 No. 6, pp.22-24
• Trites, G. (1999), The Impact of Technology on Financial and Business Reporting, Canadian Institute of Chartered Accountants.
• Trites, G. and Sheehy, D. (1997), "Electronic Disclosure Making a Hit on the Net", CA Magazine, March, p. 10.
• Wagenhofer, A. (2003), "Economic Consequences of Internet Financial Reporting", Schmalenbach Business Review, Vol. 55, October, pp. 262-279.
• Wallman, S. (1997), "The Future of Accounting and Financial Reporting, Part 5: Access Accounting", Accounting Horizon, Vol. 11 No.2, pp. 103-116.
• Wickramasinghe, N. and Lichtenstein, S. (2006), "Supporting Knowledge Creation With E-mail", International Journal of Innovation and Learning, Vol. 3 No.4, pp. 416- 426.
• Wickramasinghe, N. (2006), "Knowledge Creation: A Meta-Framework", International Journal of Innovation and Learning, Vol. 3 No.5, pp. 558-573.
• Xiao, J., Yang, H. and Chow, C. (2004), "The Determinants and Characteristics of Voluntary Internet-Based Disclosures by Listed Chinese Companies", Journal of Accounting and Public Policy, Vol. 23 No.3, pp. 191-225.
How to Cite
Mohamed, Ehab, and Peter Oyelere. 2008. “A Survey of Internet Financial Reporting in Bahrain”. Studies in Business and Economics 14 (1). https://doi.org/10.29117/sbe.2008.0042.
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Articles