Factors Affecting Financial Reporting through the Internet (Internet Financial Reporting) in the Company's Website (Literature Study)

Abstract

The use of the internet in the business world has influenced the traditional form of presenting corporate information. In addition, the rapid development of the internet creates new ways for companies to communicate with investors. Companies use the internet to report financial information to investors, known as Internet Financial Reporting (IFR). Disclosure of data on the company's website is a signal from the company to outside parties, one of which is reliable financial information and will reduce uncertainty about the company's prospects. This article examines the effect of firm size, profitability, liquidity, type of industry, leverage, auditor reputation, age of listing, level of public ownership, and level of foreign ownership on the probability of companies implementing Internet Financial Reporting (IFR). The data used in this study is secondary data in the form of data from non-financial companies listed on the Indonesia Stock Exchange. The conclusion that can draw from this article is that the variables of profitability, firm size, liquidity, type of industry, auditor reputation, foreign ownership, and public ownership have a positive and significant effect on financial reporting practices via the internet (Internet Financial Reporting). While the leverage variable, listing age, was not proven to substantially impact financial reporting practices via the internet (Internet Financial Reporting).