The determinants of internet financial reporting in Slovenia

Purpose – The purpose of this paper is to establish the level of internet financial reporting (IFR) of Slovenian companies, including the contents as well as the presentations of online financial information. The second objective was to explore the opinions of users towards newer methods of online financial reporting. Design/methodology/approach – IFR was evaluated on the basis of the IFR index composed of 32 contents-related and 18 presentations-related elements. By means of regression analysis, the authors have established the intensity and direction of impact of six factors on the IFR index: size, profitability, the company's legal form, ownership concentration, age and sector. Findings – During the first research phase, the authors established that 110 (52.64 per cent) of large companies disclose its financial information on its web site. Factors which impact the IFR are as follows: company size, ownership concentration, legal form and sector of operation. Larger companies, companies with a lower ownership concentration, public limited companies and financial sector companies disclose financial information to a greater extent compared to other companies. Practical implications – This research will enable the comparison of the annual level of IFR in Slovenia and in other countries where such research has already been performed. Originality/value – Through the disclosure of financial information online, companies will be able to improve the possibility of attracting foreign investors who often rely on the internet as the only source of information.