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The Expectation Gap in Internet Financial Reporting: Evidence from an Emerging Capital Market

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  • Turel, Asli

Abstract

The development of the internet as a global medium has significantly impacted financial reporting environment of the companies. Recently, companies have started reporting their financial results and other information relating to business on their web pages. The internet offers the facility to provide all interested groups with information to make well-informed, timely investment decision thus reducing the information advantages of institutional investors and information intermediaries. This study examines the level of internet financial reporting in Turkey. Furthermore, it tries to find out whether there is an expectation gap in internet financial reporting. In this study, “expectation gap” refers to the difference between (1) what financial statement users perceive important in decision making process to be and (2) what companies actually disclose or present in their web pages. Our findings indicate that an expectation gap exists; financial statement users have higher expectations for various facets than what companies actually report in the areas such as; reports of analysts, phone number to investor relations, segmental reporting, financial data in processable format, and summary of financial data. Our findings serve as evidence that the companies should engage in appropriate actions to reduce this expectation gap.

Suggested Citation

  • Turel, Asli, 2010. "The Expectation Gap in Internet Financial Reporting: Evidence from an Emerging Capital Market," MPRA Paper 29800, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:29800
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    References listed on IDEAS

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    Cited by:

    1. Mary Kehinde Salawu, 2013. "The Extent and Forms of Voluntary Disclosure of Financial Information on Internet in Nigeria: An Exploratory Study," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 4(1), pages 110-119, January.

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    More about this item

    Keywords

    Internet; Financial Reporting; Turkey;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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