Corporate Governance and Level of Internet Reporting in Kenya
40 Pages Posted: 16 Aug 2013
Date Written: August 14, 2013
This paper reports the results of an investigation of the association between corporate governance mechanisms and level of information disclosed by Kenyan listed companies on their corporate websites. Using data extracted from the web sites of 48 Nairobi Stock Exchange (NSE) listed companies over a two year period (96 firm years) and the Internet Business Reporting Quality (IBRQ) index to quantify the level of internet reporting practices, the study found that the level of information is above average (68.2%). Ordinary Least Squares (OLS) multiple regression results indicate that there is a significant association between corporate governance mechanism (ownership structure, independent audit committee and financial expertise) and the level of information on the corporate websites. However, no significant association is found in respect of board composition. Among the control variables (company size and profitability) only profitability is significantly associated with the level of information. The results have important implications for policy makers in Kenya in their efforts to improve level of information available on corporate websites.
Keywords: Corporate governance, Internet financial reporting, Nairobi Stock Exchange, Kenya
JEL Classification: M40
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