A Study on the Internet Financial Reporting Disclosure: A Case of Companies at Amman Stock Exchange, Jordan

The main objective of this study is to disseminate guidelines for the use of the Internet for financial information between the ASE listed companies for the year 2010, This issue is motivated by the growing concern with internet as a medium to disseminate financial information from regulatory bodies e.g. IAS. The lack of regulation of the rare use of online reporting by Jordanian companies. This study investigated the extent of dissemination of financial information over the Internet by Jordanian companies in Amman Stock Exchange (ASE) stock exchanges. This project investigates the extent of disclosure financial reporting on internet. The main objective of this study is to examine the relationship between factors and adoption to internet for disclosure financial reporting. To examine the extent of disclosure financial reporting on internet. To put light on the factors that affects these companies in the adoption of the internet to provide financial disclosure. The results show that 84 out of 100 (84%) of ASE public listed companies have web sites. It also can be seen that the lowest internet reporting is on Interim Report (only 73% i.e. 61 out of 84 websites). The most commonly found financial information is the balance sheet and income statement, both of which were disclosed by the 84 companies (100%). Accountant’s notes was disclosed by 79 companies (94%). cash flow statement, all of which were disclosed by the 77 companies (92%). Auditor reports were disclosed by 76 companies (90%). Financial highlights which were disclosed by 73 companies (86%). In addition to statement of stakeholders equity which was disclosed by 72 companies (86%). The lowest declared items were Interim report which was disclosed by 61 companies (73%). The results show that companies still partially behind those of other developed countries and other developing countries. This study also examined the effect of three factors, namely firm size, leverage and profitability at the Internet reporting (IFR). A linear regression analysis is applied for this purpose. The results show that profitability and leverage significant financial impact reports via the Internet. The result also shows that there is a significant positive relationship between the amount of financial communications through the Internet and company size.