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

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

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.

Keywords

Voluntary disclosure Internet financial reporting Independent director Managerial ownership Non executive chair 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.University of CalabriaCalabriaItaly

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