The Influence of Corporate Governance on Internet Financial Reporting in Malawi

Abstract

The study sought to establish the influence of corporate governance on internet financial reporting in Malawi using the cross-sectional time horizon design. Sixteen companies listed under the Malawi Stock Exchange and forty registered limited companies that were operational but not on the Malawi Stock Exchange with a minimum of total assets of MWK 300,000,000.00 constituted the population. The sample was limited to 50 companies of which 43 had their financial reports available on the internet, which was the source of data. Content validity was achieved through consultation with experts in the field of accounting and financial reporting. Data was analyzed through multiple regression analysis using the SPSS Software. The study established that corporate governance mechanisms did not influence the timeliness of corporate Internet Financial Reporting. However, ownership structure positively influenced the corporation to engage in the Internet Financial Reporting. Furthermore, decision usefulness positively influenced the corporations to engage in the Internet Financial Reporting. Therefore, for the companies to engage in internet financial reporting, there is a need to ensure that decision usefulness is maximized. Furthermore, there is a need to ensure a maximized ownership structure for the organizations to keep engaging in the Internet Financial Reporting.