Importance and Potential Advantages of Web-based Corporate Disclosure in Jordan: Current Status and Future Aspirations

Abstract

The study examines the perceptions of accounting information users toward the importance of a web-based disclosure for 32 items and the potential advantages for both the users and companies. The study also investigates the perceptions of users regarding the websites presentation and the obstacles of web-based disclosure. In addition, the study examines empirically the relationship between the importance of web-based disclosure and the potential advantages for both users and companies. Based on 107 online users’ responses, results show that financial information is the most important information that should be disclosed on the websites of companies according to users. Results also show that the mean values of the advantages for both users and companies are, high, close and significant. Users’ perceptions indicate that competition, cost and audit issues are the main obstacles that may hinder companies to use websites for disclosure. In addition, findings show a positive and significant relationship between the “financial” factor and the users’ potential advantages. In respect to the companies’ potential advantages, results show that both “human resources and suppliers” factor and “the governance, quality and strategy” factor have positive and significant relationship with the companies’ potential advantages. Accordingly, decision-makers should effectively use the seven factors that extracted from principle component analysis as a web-based disclosure model to create advantages for both users and companies.