Financial Data at Corporate Web Sites: Does User Sophistication Matter?
29 Pages Posted: 11 Jan 1999
Date Written: July 1999
Abstract
This study investigates companies' decisions to disseminate financial information at their corporate Internet Web sites. We expect that companies tailor the selection of data items presented at their sites to the relative sophistication of their user base. Based on prior literature, we predict which financial information items are likely to be preferred by analysts, proxying for sophisticated users, or by retail investors, who are generally less sophisticated users. Consistent with our hypotheses, the results suggest that the information provided at Web sites varies systematically with companies' levels of analyst following and retail ownership. Higher levels of analyst following are associated with relatively objective, more extensive data, and higher levels of retail ownership are associated with relatively subjective, more abbreviated information.
JEL Classification: M41, M45, G29
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Corporate Reporting on the Internet by Irish Companies
By Niamh M. Brennan and Denis Hourigan
-
Use of the Internet by Irish Companies for Investor Relations Purposes
By Niamh M. Brennan and Sorka Kelly
-
The Management of Financial Disclosure on Corporate Websites: A Conceptual Model
By Samir Trabelsi, Réal Labelle, ...
-
Corporate Reporting on the Internet in a European Emerging Capital Market: The Greek Case
-
Impact of Internet Financial Reporting on Emerging Markets
By Shirley A. Hunter and Murphy Smith