Internet Disclosure and Corporate Performance: A Case Study of the International Shipping Industry

Transportation Research Part A, Vol. 47, 2013

Posted: 14 Nov 2016

See all articles by Andreas Andrikopoulos

Andreas Andrikopoulos

University of the Aegean - Department of Business Administration

Anna Merika

American College of Greece (DEREE)

Anna Triantafyllou

American College of Greece (DEREE)

Andreas G. Merikas

University of Piraeus

Date Written: 2013

Abstract

Dissemination of information via corporate websites is considered to be desirable, because it constitutes a way round modes of market failure, such as asymmetric information in capital markets and agency problems. This paper explores the relationship between internet disclosure, profitability and financial structure in the shipping sector. Its value added lies in treating the disclosure–profitability relationship as a two-way relationship: while previous research concentrates on profitability as the main driver for greater internet disclosure, we argue that the higher the degree of internet disclosure of financial information, the more likely it is that the firm will experience enhanced profitability. Studying the websites of 171 international listed shipping corporations in 2010 we construct a disclosure index to measure the quantity of disseminated information for each firm in the sample and we explore the cross sectional determinants of disclosure performance. Measuring corporate performance with profitability, we develop a simultaneous equation model and our GMM results produce evidence of a statistically significant positive relationship between the extent of internet disclosure and corporate performance. Our finding largely explains why shipping firms are keen on making more and more financial information available via the web and has significant policy implications for executives, as it suggests that greater internet disclosure is not a mere effect of sound financial performance, but also, and perhaps more importantly, a requirement for it.

Keywords: Internet disclosure, Profitability, Shipping industry

Suggested Citation

Andrikopoulos, Andreas and Merika, Anna and Triantafyllou, Anna and Merikas, Andreas G., Internet Disclosure and Corporate Performance: A Case Study of the International Shipping Industry (2013). Transportation Research Part A, Vol. 47, 2013, Available at SSRN: https://ssrn.com/abstract=2868665

Andreas Andrikopoulos (Contact Author)

University of the Aegean - Department of Business Administration ( email )

8 Michalon Str
Chios, GR 82 100
Greece

Anna Merika

American College of Greece (DEREE) ( email )

Gravias 6,
Aghia Paraskevi
Athenes, 153-42
Greece

Anna Triantafyllou

American College of Greece (DEREE) ( email )

Gravias 6,
Aghia Paraskevi
Athenes, 153-42
Greece

Andreas G. Merikas

University of Piraeus ( email )

Piraeus, LA
Greece

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
242
PlumX Metrics