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The Impact of Corporate Governance on Internet Financial Reporting in Concentrated Ownership Companies

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Organizational Change and Information Systems

Part of the book series: Lecture Notes in Information Systems and Organisation ((LNISO,volume 2))

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Abstract

In the context of agency theory this study investigates the effect of corporate governance (CG) on Internet Financial Reporting (IFR) disclosure in a concentrated ownership environment, such as Italy. We hypothesize that IFR may be explained in term of increasing transparency in order to defend minority shareholder interest, so we predict, and find, a positive association between the extent of a firm’s IFR and its CG and a negative association between IFR and ownership structure. CG is measured by ownership structure, using as a proxy the share held by the first three major shareholders and by managerial ownership, and by board composition, captured through the incidence of independent director (IND) and of a Non-Executive Chair (NEC). IFR is measured taking into consideration the content and format of information present in Investor Relations sections.

Though this work is the fruit of joint reflection and collaboration, for academic reasons the paragraphs 1, 2, 3, 5.2 and 6 are to be attributed to Romilda Mazzotta and the paragraphs 4 and 5.1 are to be attributed to Giovanni Bronzetti

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Authors and Affiliations

  1. University of Calabria, Calabria, Italy

    Romilda Mazzotta & Giovanni Bronzetti

Authors
  1. Romilda Mazzotta
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  2. Giovanni Bronzetti
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Correspondence to Romilda Mazzotta .

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Editors and Affiliations

  1. , CeRSI, LUISS Guido Carli, via Alberoni 7, Roma, 00198, Italy

    Paolo Spagnoletti

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Mazzotta, R., Bronzetti, G. (2013). The Impact of Corporate Governance on Internet Financial Reporting in Concentrated Ownership Companies. In: Spagnoletti, P. (eds) Organizational Change and Information Systems. Lecture Notes in Information Systems and Organisation, vol 2. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-37228-5_10

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