Factors Influencing Internet Financial Reporting in Lebanon Commercial Banks
Internet Financial Reporting (IFR) refers to using the company’s website to disclose information about its financial performance. Recently IFR is considered a well established activity which tends to improve the efficiency, timeliness, and fairness of financial information for the benefit of the stakeholders especially investors and creditors who are considered the main users of corporate reporting. IFR has attracted the attention of many regulatory bodies who have conducted several studies concerning the dissemination of financial information on the internet (ex. FASB and IASB). This research investigates the quality of IFR in Lebanon commercial banks and studies the factors influencing its practices using the following banks’ characteristics: bank size, profitability, leverage, listing status, ownership structure, the bank nationality, and liquidity. The whole population of the commercial banks in Lebanon that consists of 54 banks is studied. A content analysis of annual reports and banks’ websites is performed and IBRQ index is used to examine the quality of IFR. The results show that 93% of the banks in Lebanon have websites of which 75.9% disclose IFR. 75.6% of the banks that have IFR disclose complete set of financial information, 22% disclose partial or summary financial statements only, and 2.4% of the banks report financial highlights only. The results of the statistical analysis have shown that the bank size and the listing status are significant determinants of IFR.
Rasha Fouad Bou Hamdan
Prof. Nehale Mostapha & Dr. Mohamed Gaber Ghanem