Financial Data at Corporate Web Sites: Does User Sophistication Matter?

29 Pages Posted: 11 Jan 1999

See all articles by Michael Ettredge

Michael Ettredge

University of Kansas - Accounting and Information Systems Area

Vernon J. Richardson

University of Arkansas at Fayetteville

Susan Scholz

University of Kansas - Accounting and Information Systems Area

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

Ettredge, Michael L. and Richardson, Vernon J. and Scholz, Susan, Financial Data at Corporate Web Sites: Does User Sophistication Matter? (July 1999). Available at SSRN: https://ssrn.com/abstract=142936 or http://dx.doi.org/10.2139/ssrn.142936

Michael L. Ettredge

University of Kansas - Accounting and Information Systems Area ( email )

1300 Sunnyside Avenue
Lawrence, KS 66045
United States
785-864-7537 (Phone)
785-864-5328 (Fax)

Vernon J. Richardson (Contact Author)

University of Arkansas at Fayetteville ( email )

401 WCOB
Fayetteville, AR 72701
United States

Susan Scholz

University of Kansas - Accounting and Information Systems Area ( email )

1300 Sunnyside Ave
Lawrence, KS 66045
United States
785-864-7554 (Phone)
785-864-5328 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
458
Abstract Views
3,004
rank
61,867
PlumX Metrics