CORPORATE GOVERNANCE CORPORATE SOCIAL RESPOSIBILITY DISCLOSURES

To what extent corporate governance and CSR are converging in international business not only depends on views on corporate governance, but also on how CSR is framed within an MNE. As mentioned in the introduction, CSR is an elusive concept that, just as corporate governance, has been defined in many different ways. Nevertheless, there is some agreement that it involves attention on a voluntary basis to the ethical, social and environmental implications of business (Carroll, 1999; Whetten et al., 2002). One important dimension for how CSR is framed concerns its scope: is it perceived as an external or internal issue? Deakin and Hobbs (2007) argue that CSR is often thought of by managers of listed firms as a way of dealing with external issues, for example the ethical consequences of outsourcing production activities, fair trade, and global environmental problems. However, these authors also indicate that CSR is sometimes interpreted differently as well, focusing on internal issues instead. They give the example of the European Commission, which argued in a Green Paper that besides an external dimension, CSR has an internal dimension, which involves employees’ working conditions such as work force diversity and equal pay for women (EC, 2003). The distinction between internal and external aspects of CSR touches upon one of the main debates in corporate governance: if firms have a responsibility to a wider group of constituents, how far should this responsibility go and what kind of (social and environmental) activities will they become involved in?

It was with these questions in mind that the stakeholder approach was first introduced (Freeman and Reed, 1983). This approach explains why business has responsibilities that go beyond the maximization of profits to include the interests of non-stock holding agents. Indeed, if a company would focus solely on such narrow objectives, the expectations of other stakeholders would be neglected, and in turn their support could be compromised in the long term. Freeman’s (1984, p. 46) definition of stakeholders as “any group or individual who can affect or is affected by the achievement of the organization’s objectives” is most widely accepted (Mitchell et al., 1997). 

Advocates of the stakeholder perspective consider as a starting point that “all persons or groups with legitimate interests participating in an enterprise do so to obtain benefits and that there is no prima facie priority of one set of interests and benefits over another” (Mitchell et al., 1997, p. 68). From such a perspective, a company emerges as a nexus of implicit and explicit contracts between various actors with interests that are not always congruent (Hill and Jones, 1992). The stakeholder approach emphasizes that actors have different motivations to engage in relationships with a firm and expect different benefits from their collaboration. This means that dealing with stakeholders poses complexities for business in view of conflicting interests (cf. Daily et al., 2003). Researchers in finance and governance also criticise the concept (Jensen, 2001; Sternberg, 1997), inter alia because it is “a convenient portmanteau expression into which many different items can be packed” (Charkham, 2005, p. 20). Another important argument has been that the stakeholder approach makes managers unaccountable for their actions because it does not contain clues on how to balance competing interests and thus gives managers the opportunity to pursue their own causes (Bradley et al., 1999; Jensen, 2001). 

In prioritising competing stakeholder interests, it has been argued that firms take into account to what extent the organization depends on a stakeholder for resources (Jawahar and McLaughlin, 2001). This instrumental view on CSR suggests that firms’ primary reason to be responsive to stakeholders is a maximization of long-term market value (Donaldson and Preston, 1995; Jensen, 2001). Such instrumental motives are closely connected to the way corporate governance has broadened in recent years. As discussed above, a corporate governance view suggests that the main reason for firms to deal with stakeholders is that neglecting them could mean a loss of control on the strategic direction and performance (Luo, 2005a). We therefore expect that firms driven by instrumental motives to practice CSR will predominantly be concerned with shareholders and inside stakeholders such as managers and employees, and, as a consequence, frame CSR with a focus on internal aspects. This is supported by the literature which has found that corporate governance has a considerable impact on internal CSR issues such as employee conditions (Deakin et al., 2002) and ethical aspects related to remuneration, managerial and employee behaviour (Bonn and Fisher, 2005; Kimber and Lipton 2005; Rossouw 2005; Ryan, 2005; Wieland, 2005). 

In contrast, motives to deal with outside stakeholders may be seen as not as closely, or not only, connected to instrumental motives, but relying also, and perhaps more, on sustaining moral legitimacy vis-à-vis outsider groups (Suchman, 1995). When CSR is mainly a response to outside stakeholders such as local communities and NGOs, it is more likely to be perceived as dealing with external environmental and community issues (Deakin and Hobbs, 2007). On the basis of this, it can be argued that external framing of CSR shares considerably less commonalities with corporate governance. This would imply that framing CSR focusing on external issues puts much less emphasis on the competitive nature of CSR. Only in a small minority of cases implications for a firm’s strategic direction and performance may be involved – an example that is currently mentioned in this regard is climate change, but this is still in its infancy (cf. Cogan, 2006). On the whole, we thus expect that corporate governance is more likely to be integrated in MNEs’ CSR policies when CSR is framed with a strong focus on internal aspects such as employee conditions and ethical behaviour of managers and employees.

READ MORE - CORPORATE GOVERNANCE CORPORATE SOCIAL RESPOSIBILITY DISCLOSURES

Theoritical Framework of Premature Sign-off Audit

Attribution Theory  

Attribution theory will provide an explanation of how to determine the cause or motive of the person's behavior. This theory was directed to develop an explanation of the ways we judge people differently, depending on the meaning of what we associate to a particular behavior. This theory refers to how one explains the causes of the behavior of others or himself (Luthans, 1998), which determined whether from internal or external (Robert, 1996) it will show its effect on individuals. 

The cause of this behavior in social perception, better known as disspositional attributions (internal causes), and situational attributions (external causes) (Robert, 1996). Internal causes tend to refer to aspects of individual behavior, something that has existed in a person such as a personal trait, self-perception, ability and motivation. While external causes more referring to the environment that affect a person's behavior, such as social conditions, social values, public opinion as well as contextual factors audits (audit risk, Materiality and reviews procedures and quality control). 

Based on the above it can be concluded that attribution theory can be used as a basis for finding such factors as contextual factors audit (audit risk, Materiality and reviews procedures and quality control) cause why the auditors did sign off prematurely. By knowing the factors that cause an auditor to sign off prematurely, then the trigger factors of premature sign-off can be minimized, so that the auditor wishes to make a premature sign-off can be reduced. 

Inverted U Theory 

Inverted U theory is the most widely used model to explain the relationship between pressure and performance. According to Robbins (2006), the logic underlying the theory of an inverted U (Figure 2.1) that the stress at low to moderate levels stimulates the body and improve ability to react. In this condition the individual is usually able to do the job better, more intensive or faster. But if too much stress will place demands that can not be achieved or someone constraints, resulting in decreased performance. While stress is defined as a condition in which individuals face the opportunities, constraints (constrains), or demands (demands) associated with what is really wanted and the results are perceived as something that is uncertain but important (Robbins, 2006). 

Model of the inverted U theory also describes the reaction to stress from time to time and to changes in stress intensity. Theoretical model of an inverted U got a lot of criticism from researchers such as Otley and Pierce (1996), which found no evidence of an inverted U curve relationship; Kelley and Margheim (1990), which examines the relationship between time budget pressure by dysfunctional behavior auditors found no significant results statistically to support the inverted U theory. Likewise, the results of research conducted by Pierce and Sweeney (2004), who found a linear relationship between time budget pressure and dysfunctional behaviors. Robbins (2006), also mentioned that this model does not get much support empirically. Linear relationship is the basis of this research in linking between work pressure and the risk of error the auditor. 

Research in psychology conducted by Djatmiko (2007), mentions that the relationship between stress and performance is not a linear but rather an inverted U curve, this is due to the body's physiological response to stress conditions would interfere with an individual's performance. Distress at each level will cause performance degradation, so that optimal performance is achieved at the individual precisely the highest stress levels. In this study the relationship between pressure and quality of performance is linear, where the rate of premature sign-off will occur at the time the budget pressures the lowest and highest. 

Reduced Audit Quality

As professionals, auditors are required to use his professional skills with a meticulous and thorough in carrying out the audit (IAI, 2001, section 230.01). The use of professional skills with careful and thorough skepticism requires the auditor to carry out their professional and must disclose in reasonable condition of the company being audited based on an evaluation of the evidence obtained during the course of auditing. In an effort to obtain sufficient competent audit evidence, then prior to conducting an audit of KAP is required to create and develop an audit program in writing. The audit program is a collection of audit procedures to be implemented during the audit process. 

 The existence of audit quality reduction behavior (RKA) is also called "irregular auditing practice" (Willett and Page, 1996) in the auditing literature is evidence that the implementation of audit procedures in accordance with the audit program is not always implemented the auditor. RKA behavior is defined "as the actions undertaken auditor during the audit assignment which reduces the effectiveness of audit evidence collected" (Malone and Robert, 1996, p. 49). Thus the evidence gathered during the audit is unreliable, wrong or inadequate in quality and quantity (Herrbach, 2001). The evidence is not quite as competent and reasonable basis for the auditor in detecting errors and irregularities are adrift on the audited financial statements. 

RKA behavior is a serious problem, because they reduce the quality of audits directly (Otley and Pierce, 1996a; McNair, 1991). As stated by McNair (1991, p. 642): 

This type of behavior, namely a failure to exercise due care, can in the extreme undermine the integrity of the audit process. The inability to monitor true effort is perhaps the most critical exposure, or danger, faced by an audit management held accountable for audit integrity by the public.

Studies of the behavior of earlier RKA mainly focused on one type of behavior that is considered the most serious RKA is premature discontinuation of audit procedures (premature sign-off) [eg. Alderman and Deitrick, 1982; Margheim and Company, 1986; Raghunathan, 1991 ]. Premature termination of the audit procedure is an act performed by the auditor does not implement or ignore one or more of the required audit procedures, but the auditor documenting all audit procedures have been completed in full (Alderman and Deitrick, 1982; Raghunathan, 1991). 

Rhode (1978) results in Alderman and Deitrick (1982) showed the majority (nearly 60 percent) of respondents admitted they sometimes make premature termination of audit procedures. The results of subsequent studies conducted Alderman and Deitrick (1982) and Raghunathan (1991) confirm these findings. 

Findings of subsequent studies conducted by Kelley and Margheim (1990), Malone and Robert (1996), Otley and Pierce (1996a), Herrbach (2001) and Pierce and Sweeney (2004) shows in addition to premature termination of the audit procedures, various forms of other actions performed auditors in the implementation of audit programs that could potentially reduce the quality of audits.

READ MORE - Theoritical Framework of Premature Sign-off Audit

PREMATURE SIGN-OFF AUDIT PROCEDURES

in the recent case of an audit on the company, as Enron, WorldCom in the USA (Duska and Brenda, 2003) Kimia Farma and closure of Public Accounting Firm in Indonesia (www.bapepamlk.depkeu.go.id) becomes an great issue for the public accounting profession and formidable challenge to improve the image of the audit profession in providing quality audits. A good of Quality Audit in principle can be achieved if auditors apply the standards and principles of auditing, behaving freely without impartial (Independent), obedient to the law and comply with professional codes of ethics. Reduction of audit quality is defined implementation of audit quality reduction is done deliberately by the auditor (Coram, et al, 2004). Kane and Velury (2005), defines quality audit as the capacity of the external auditors to detect materiality and irregularities form. Russell (2000), mentions that quality audit is a function of quality assurance which will be used to compare actual conditions with which they should. Reduction of Quality Audit behavior or Reduced Audit Quality is an action taken by the auditors during contract in which these perform can reduce the accuracy and effectiveness audit evidence collection (Malone and Robers, 1996). This behavior can occur because there is a dilemma between the costs inherent in the audit process and quality, the faced by auditors in the audit environment (Kaplan, 1995). On one hand, the auditor must meet the Professional Standards to achieve a high level of audit quality that can be achieved by performing the audit procedures. But on the other hand, auditors face cost barriers that make to degrade the quality of audits. In addition, barriers of time may be one factor leading to lower quality audit, due to the limited time the auditor is required to complete all audit procedures, it affects the auditor's actions are intentionally not doing all the existing audit procedures. Various studies with respect to the quality of audits have been conducted among others researcher. Kelly and Margheim (1990), mentions that the decline in audit quality is the result of pressure. Otley and Pierce (1995), explains that some auditors dysfunctional behaviors such as Premature Sign-Off Audit Procedures are a few behaviors that tend to lead to problems behaviors as auditors, which will affect the quality loss audit and trends of lowering public confidence in the accounting profession and eventually kill the profession itself. Debate Stock Exchange Commission (SEC) in the discussion of Effectiveness Audit, has been established by the American Institute of Certified Public Accountants (AICPA) has recommended that the dysfunctional Behavior is a problem that requires sustained attention (Public Oversight Board, 2000). The survey has been conducted on senior auditor of the Big Six in Ireland have confirmed that 89% involved with some form of behavior lowers the quality of audits in Premature Sign-Off Audit Procedures, while 12% were participating in the under reporting of Time and more other (Otley and Pierce, 1995). This condition would require attention by the practitioners and institutions in the implementation audit, the auditor can maintain the quality of her work. Studies Cohen Commission (1978), Rhoden (1978), Alderman and Deitrick (1982), and Raghunathan (1991) detect the reasons why auditors perform premature sign-off of audit procedures, auditing of the limited period of time specified, the perception of audit procedures performed not important (low risk), no material audit procedures, audit procedures that are less understood, the audit report submission deadline, as well as the influence of auditors' boredom. Heriningsih (2002) found a significant relationship between time pressure and audit risk of premature sign-off of audit procedures. However, this study can not prove that the level of materiality may be associated with premature termination of audit procedures. The survey, conducted by Conram, et.al., (2000), against 106 senior auditor general explained that the budget time pressures providing the greatest influence on the behavior of reduced quality audit and associated with audit risk. The results explained that under conditions of low level of audit risk of error associated with an increase in audit quality reduction acts as a whole. Otley and Pierce (1996), explaining that managers tend to perform reduced quality audit compared to increase the budget time. However, different results presented by Houston (1999), that senior audit time budget less influence on the risk of the client in terms of audit fee pressure. Malone and Roberts (1996), found no relationship between the level of time budget pressures and a decrease in audit quality. Auditors are often confronted by the presence of time pressure. Time pressure consists of time budget pressure and time deadline pressure. When the time budget that has been specified could be achieved, it will not cause conflicts, so the possibility of dysfunctional behaviors will not be done. Previous studies showed significant association of time pressure in explaining dysfunctional behaviors (Kelley and Margheim, 1990; Carcello et al, 1996; Otley and Pierce, 1996a; Willett and Page, 1996; Pierce and Sweeney, 2004; McNamara et al , 2005). In these studies the time pressure operationalized as the attainment of time budget (time budget attainability). The existence of time pressure causes a person is required to complete a job soon and if it is not achieved it will lead to conflict because of the time allowed for an elapsed and the quality of audit work may be interrupted and it will lead to dysfunctional behaviors. Previous research on time pressure associated with dysfunctional behavior has been done by Pierce and Sweeney (2004) and Kelley et al, (1999), DeZoort and Lord (1997), (Eden, 1982) and the results showed there is a significant relationship. Weningtyas et.al, (2006) found evidence of a significant relationship between time pressure, risk audits, materiality and review procedures and quality control of the termination of audit procedures. The results of the study Weningtyas et.al., proved that the time pressure and audit risk associated positively with cessation of auditing procedures, so the greater the time pressure and audit risk faced by auditors, the greater the tendency of auditors to conduct audits termination procedures. While materiality and reviews procedure and quality control is negatively related to the termination behavior of audit procedures, so that the lower the materiality and review procedures and quality control the behavior of the lower termination of audit procedures. This study was motivated by Conram et.al., (2000), Heriningsih (2002) and Suryanita, et.al, (2007). Previous studies testing the audit procedures that are often stopped by the auditors and examine the relationship between time pressure, audit risk, materiality and reviews procedure and quality control have an impact on the decision to conduct an audit procedure termination. These studies there are inconsistencies between study results Herningsih (2002) and Suryanita et.al., (2006) in assessing the relationship between the materiality of the termination of audit procedures. Herningsih (2002) found no significant relationship between the materiality of the termination of audit procedures, while Suryanita et.al., (2006) could prove the relationship. This research can be assured the results of previous studies on the relationship between the materiality of the termination of audit procedures. This study refers to termination of audit procedures above. This study involves the auditor respondents who worked in Semarang. Semarang as it is one big cities in Indonesia and has quite a lot of public accounting firm so it is quite representative for this study, and to find out how much time pressure faced by auditors in Semarang effect on performance, because thera a various result of time pressure that faced by auditors in different regions (Suryanita et al, 2007). The difference with previous studies (Conram et al, 2003), is that previous studies using samples of students at the Advanced Audit Module of the Professional Year (PY) at the Institute of Chartered Accountants in Australia (ICAA) was identified as a senior audit as the object of research , while this study will use the Public Accounting Firm. The object of this study is the auditor who worked in Public Accounting Firm in Semarang by taking samples of CPA in Semarang. According to Chengbroyan and Soobaroyen (2005) found that Time budget pressure in developing countries is much smaller when compared with developed countries. Soobaroyen and Chengbroyan (2005) also found that the higher the level of budget tightening the practice of premature discontinuation of audit procedures increases as well. Study Herningsih found that 56% respondents perform audit procedures whereas discontinuation of Suryanita showed only 13% of respondents who perform audit procedures premature termination.

READ MORE - PREMATURE SIGN-OFF AUDIT PROCEDURES

INTERNET FINANCIAL REPORTING IN INDONESIA

Several empirical studies examine corporate financial reporting on the internet in different countries (e.g., Budi and Almilia 2008b, Pirchegger and Wagenhofer 1999; Ismail 2002; Wagenhofer 2003). Pirchegger and Wagenhofer (1999), and Ismail (2002) analyze internet use and the extent of financial disclosure on the internet. Budi and Almilia 2008 examine the use of bank websites and LQ-45 firms in Indonesia. LQ-45 firms are those that are contained in the LQ-45 Indonesian stock index. They find that most public banks and LQ-45 firms in the sample had websites and provided financial data on their sites. Davey and Homkajohn (2004) found that Thai companies provide financial information on websites as a complement to their traditional paper-based annual reports. The Indonesian Company Act 2007 addresses the obligations of a company to report their sustainability activities (Undang-undang Perseroan Terbatas No. 40 Tahun 2007).

Indonesian security regulations currently do not require firms to disseminate financial information on the internet. Another issue is the lack of formal guidance and differences in the nature and extent of reporting on the web. This is likely to raise issues concerning the comparability and reliability data. The national standards setters and regulators of accounting practices will not be able to indefinitely treat financial reporting on the internet as identical to traditional distribution channels. We argue that the Indonesia government or other regulatory bodies should introduce guidelines that provide both firms and information users with a framework for this data exchange.

The analysis of internet financial reporting determinants extends the theories and models that have been developed regarding disclosure through traditional media. Oyelere et al. (2003) indicate that firm size, liquidity, industrial sector and shareholder dispersion are determinants of voluntary internet financial reporting (IFR). Abdelsalman et al. (2007) find corporate internet reporting comprehensiveness is related to analyst following, director holding, director independence, and CEO duality. Ismail (2002) finds that firm assets, profitability, and leverage affect the decision to disseminate financial information on the internet. An index was developed based closely on the work of Davey and Homkajohn (2004). These authors devised their framework from the three stages of website financial reporting identified by Lymer et al. (1999).

Voluntary Disclosure
Many studies of voluntary disclosure have been conducted. These studies attempt to identify factors that contribute to voluntary disclosure. Theories that explain voluntary disclosure include agency theory, signaling theory and cost-benefit analysis. Agency theory is regarded as an important construct for understanding financial reporting incentives. Agency theory proposes that, in the presence of information asymmetries, managers will choose the set of decisions required to maximize their usefulness. Several empirical studies examine how agency problems can be mitigated through increased disclosure. Ball (2006) argues that increased transparency and disclosure contribute to a better convergence interests between managers and shareholders. In this sense, agency theory conceives voluntary disclosure as a mechanism to control the manager performance and reduce information asymmetry and monitoring costs.

Signaling theory suggests that higher quality firms will use the internet to disseminate “old” accounting information. Gray and Roberts (1989) considered the cost and benefits of voluntary disclosure and investigated perceptions of the costs and benefits empirically. They found that for British multinationals, the most important perceived voluntary disclosure benefits were: 1) improved reputation of the company, 2) better investment decisions by invertors, 3) improved accountability to shareholders, 4) more accurate risk assessment by investors, 5) fairer share prices. The most important cost factors constraining voluntary disclosure were, 1) competitive disadvantage costs and 2) data collection and processing costs.

Internet Financial Reporting
There is a growing body of empirical studies on IFR since 1995 reflecting the growth in this information medium. Several studies have examined the determinants of web-based disclosure policy (Pirchegger & Wagenhoffer, 1999; Budi and Almilia, 2008a). Several other studies have investigated the nature and extent of financial reporting on corporate websites as an instrument for firms’ stakeholder relations. Cheng, Lawrence and Coy (2000) developed a benchmark index to measure the quality of IFR disclosure of the Top 40 New Zealand companies. The results revealed that 32 (80%) on the companies in the sample had websites and 70% of the sample presented financial information on their websites. Of the 32 companies having websites, only 8 (25%) companies scored more than 50% on the index by virtue of having reasonably well-developed sites.

Deller, Stubenrath and Weber (1999) find that more US corporations (91%) used the internet for investor relation activities than UK (72%) and German (71%) corporations. In the USA, corporate reporting on the internet seems to be standard. In contrast, in Germany only about two-thirds of the corporations used the internet as an alternative way to distribute accounting information. UK corporations are more extensive users of the internet as an alternative distribution channel than German firms. Rikhardsson, Andersen and Bang (2002) find that many GF500 companies publish social and environmental information on their websites. Rikhardsson et al (2002) show the most popular environmental issues addressed are environmental policies, resources consumption, emissions and product performance. With regard to the social aspect of internet reporting the most popular issued addressed are workplace performance, stakeholder relationship, and social policies.

Empirical research of internet financial reporting in Indonesia is also provide by Budi and Almilia (2008a). By measuring the IFR of 19 public banks in Indonesia it was shown that most public banks in the sample had websites and provided financial data on their sites. The survey findings show that the nature of IFR disclosure varies considerably across the sample banks. The variation in the content of the websites suggests that firms had different reasons for establishing an Internet presence. Some banks’ websites contains only product and service advertising. Most financial reporting is confined to PDF, which appear exactly like the paper-based annual reports. Apart from cost considerations, this may be to protect the data from inaccuracies and unauthorized modifications. Most banks in the sample do not take full advantage of computer technologies. Only one bank allows users to download financial information or provided analysis tool for users to make their own analyses. A common feature of the websites is online feedback. None of the banks used advanced futures (XBRL) to create their websites. Almilia and Budi (2008) examine 19 bank industry and 35 LQ-45 firms. The result show that banking sector firms have higher scores on technology and user support components than LQ 45 firms.

READ MORE - INTERNET FINANCIAL REPORTING IN INDONESIA

Financial Disclosure on Corporate Website

Internet financial reporting (IFR) is a recent but fast-growing phenomena. Many companies worldwide publish their corporate financial information on the internet. Financial information provided on the web includes comprehensive sets of financial statements, including footnotes; partial sets of financial statements; and/or financial highlight that may include summary financial statements or extracts from such statements.

By placing financial information on the firm’s website, users can search, filter, retrieve, download, and even reconfigure such information at low cost in a timely fashion. But Internet Financial Reporting (IFR) is not restricted to static texts and graphs. It allows for hyperlinks, search engine, multimedia, and interactivity (Lymer, 1999). Even more use of interactivity would be a dialogue reporting by which users could specify information demands based on information they received previously.

Firms can learn from tracking users’ information requests or specific user demands, which users can pose either anonymously or by filling in some kind of access identification. Access statistics are market-driven direct measures of the importance of information, and if interpreted carefully, can guide firms and also standard-setters to react to the demand revealed by the users’ behavior. Software applications offered by a preparer on the internet could allow firms to learn assumptions investors in analyzing financial data.

The internet may also improve the availability of financial information within firms themselves. For example, many of the processes that occur in distant places can be automated and fed into a firm-wide information system. Reporting and consolidation is improved and speeded up (“fast close”). One opportunity is to increase reporting frequency from annual or quarterly to monthly, daily, or even (almost) instant financial statement. The internet is a perquisite for high-frequency reporting, as the information should be provide immediately after the announcement release and will lose value fast if delivered to users too late relative to the length of the periods it covers. A consequences of more frequent reporting could be that the users’ focus on quarterly earnings may vanish, and with it the incentives of firms to manage them. However, it would require a major change in most accounting systems because events, such as updates of market prices, estimates, judgments, would need to be entered on real-time basis as well. Of course, economic questions such as the optimal length of a reporting period emerge, but are not yet well understood (Wagenhofer, 2003).

The advantages of IFR give rise to a number of issues, which include blurring the line between audited and unaudited information, equity and efficiency of access, introduction of errors, security and integrity of the information, and other professional issue.

Internet reporting blurs the distiction between current financial information used by management and the historical (and audited) information made available to the public (Hodge, 2001). This reporting may supersede the historicaly audited information currently made available to shareholders and the company’s broader constituencies by providing financial information used by management.

In some Web sites, a downloadable data feature allows the user to copy data into the appropriate word processing application or a spreadsheet application. At least one company also provides analytical tools’ to assist its users in summarizing and analyzing the company’s historical financial data and in modeling projected earnings. Based on the comments of some companies interviewed, providing those tools helps to promote greater usage of a company’s Web site by saving re-keying time and effort for those interested in analyzing the data.

READ MORE - Financial Disclosure on Corporate Website