Corporate Internet Reporting and Firm Performance: Evidence from Banks, Diversified Financial, and Insurance firms in Sri Lanka

Abstract

The aim of this study is to examine the impact of Corporate Internet Reporting (CIR) on firm performance for a sample of 68 banks, diversified financial, and insurance firms in Sri Lanka over the year 2018. The researcher used content analysis to retrieve the internet reporting items. This study used a checklist of 105 items, which were adopted from previous studies. The current study observed that the mean of the content element disclosure score for the sample is about 77.3%, whereas the mean of the presentation element disclosure score for the sample is about 57.6%. Further, the result of the regression analysis revealed that the content element disclosure only has a significant positive association with return on assets. However, both the content element and the presentation element have no significant association with return on assets or Tobin’s Q. Hence, the findings of this study provide a clear understanding to stakeholders of the firm to make better investment decisions as it is an international requirement.