The effect of board characteristics on internet financial reporting quality: evidence from Malaysia
The emergence of digital technology has spurred utilization of internet financial reporting (IFR). However, without the initiative from a corporate board to address issues such as lacking vigorous regulations that prescribing best practices of online business reporting, IFR quality may not be elevat...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
HRMARS
2020
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| Subjects: | |
| Online Access: | http://eprints.utm.my/id/eprint/28192/1/MohdNoorAzli2020_TheEffectofBoardCharacteristicsonInternet.pdf http://eprints.utm.my/id/eprint/28192/ http://dx.doi.org/10.6007/IJARAFMS/v10-i3/7823 |
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| Summary: | The emergence of digital technology has spurred utilization of internet financial reporting (IFR). However, without the initiative from a corporate board to address issues such as lacking vigorous regulations that prescribing best practices of online business reporting, IFR quality may not be elevated accordingly. The main objective of this study is to determine the extent of qualitative characteristics of IFR across Malaysian listed companies by examining the relationship between board characteristics and IFR quality (IFRQ), moderated by Effectiveness of Internal Audit Function (EIAF). Qualitative approach via non-probability purposive sampling was used to select the companies from 11 relevant industries in Malaysia, to which 160 companies were selected to examine these correlations. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) via WarpPLS version 7.0. The results prove that board size, independence of directors, and female directors significantly improve IFRQ. The EIAF appears to moderate only independent directors. This could be due to substitute effect between board quality and internal audit quality. This study provides a better understanding of the role of board characteristics towards improving IFRQ and enriching the literature on IFR measurement mechanism. |
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