The Factors Influencing Web Disclosure: Evidence from Indonesia Manufacturing Companies Listed in Indonesia Stock Exchange

Abstract

Capital markets have become increasingly important in driving a country’s economy. The capital markets could perform their role effectively if there is available information for investors. Along with the evolution of information technology, information dissemination by companies could be done more efficiently and promptly manner, for example using corporate websites. However, information dissemination through corporate websites (web disclosure) has not been fully utilized by companies, especially Indonesian companies. Therefore, this research analyzed the factors influencing web disclosure by manufacturing companies in Indonesia. The hypothesis testing was conducted with Partial Least Square Structural Equation Modeling on 54 Indonesian manufacturing companies listed on Indonesia Stock Exchange. The analysis found that company size and corporate governance mechanisms have a positive relationship, and leverage has a negative relationship with web disclosure. The results have also found no relationship between culture and profitability with web disclosure.