Digital Reporting by Small Private Companies: Evidence from the UK

44 Pages Posted: 2 Jun 2017

See all articles by Esra'a Alkhatib

Esra'a Alkhatib

Rutgers, The State University of New Jersey - Accounting

Jill Collis

Brunel University London - Brunel Business School

Hannu Ojala

University of Eastern Finland; Aalto University - School of Business

Date Written: June 1, 2017

Abstract

This study investigates the costs and benefits of digital reporting by small companies in the UK. The evidence is taken from an online survey of 343 ACCA members in the UK. As hypothesised, our results concerning the costs show a significant positive association between digital reporting and the company having the technological competence and also having support for this innovation from top management. As predicted, we find a significant negative association between digital reporting and the complexity of the process, and the cost of technology. With regard to the benefits, we find evidence of a significant positive association between digital reporting and benefits to filers and also to those using the digital corporate data provided. The latter association is mediated by the digital search and data services provided by Companies House. This study contributes to the emerging literature on this topic by identifying the actual costs and benefits of digital reporting to small companies in the UK and extending the theoretical model based on the diffusion of innovation theory and technology-organization-environment framework. The results should be of interest to the directors of small companies and their accountants, policy makers seeking to reduce the administrative burdens on smaller entities in the UK and to regulators in other jurisdictions planning for digital reporting initiatives.

Keywords: Costs and Benefits, Digital Reporting, Private Companies, Small Companies, UK, XBRL

JEL Classification: M4

Suggested Citation

Alkhatib, Esra'a and Collis, Jill and Ojala, Hannu, Digital Reporting by Small Private Companies: Evidence from the UK (June 1, 2017). Available at SSRN: https://ssrn.com/abstract=2978512 or http://dx.doi.org/10.2139/ssrn.2978512

Esra'a Alkhatib (Contact Author)

Rutgers, The State University of New Jersey - Accounting ( email )

United States

Jill Collis

Brunel University London - Brunel Business School ( email )

Kingston Lane
Eastern Gateway Building
Uxbridge, Middlesex UB8 3PH
United Kingdom

Hannu Ojala

University of Eastern Finland ( email )

Yliopistonranta 1
Kuopio, 70210
Finland
+358443290604 (Phone)

Aalto University - School of Business ( email )

P.O. Box 21210
Helsinki, 00101
Finland

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