Corporate internet reportirng practices: An exploratory study of listed companies in Vietnam securities market

ignificant differences do exist not only in the overall IRI score between HSX companies and HNX companies (F = 20.094, sig. < 0.05) but also in the specific IRI component’s score (except IRIP2 with sig. > 0.05). Hence, it can be concluded that in terms of content reporting listed companies in HSX disclosed more information on their websites than listed companies in HNX. However, in terms of presentation, we did not find significant differences in technological advantages and users supports on the websites between two groups of listed companies either in HSX or in HNX. Table 4. Internet Reporting Index by HSX and HNX companies Topic HSX HNX Total IRIC1 51.55 32.61 41.23 IRIC2 29.83 22.35 25.75 IRIC3 26.79 14.22 19.94 IRC4 48.35 37.21 42.28 IRI Content 38.91 26.67 32.24 IRIP1 41.54 40.37 40.90 IRIP2 58.02 49.36 53.30 IRI Presentation 49.78 44.86 47.10 IRI Overall 44.34 35.77 39.67 Source: SPSS 20.0 Table 5. One-way ANOVA 51 Sum of Squares df F Sig. IRIC1 Between Groups 1.779 1 34.631 .000 Within Groups 10.170 198 Total 11.948 199 IRIC2 Between Groups .278 1 8.777 .003 Within Groups 6.262 198 Total 6.540 199 IRIC3 Between Groups .783 1 14.898 .000 Within Groups 10.407 198 Total 11.191 199 IRIC4 Between Groups .616 1 11.415 .001 Within Groups 10.685 198 Total 11.301 199 IRI Contents Between Groups .742 1 25.741 .000 Within Groups 5.711 198 Total 6.453 199 IRIP1 Between Groups .372 1 7.576 .006 Within Groups 9.730 198 Total 10.102 199 IRIP2 Between Groups .007 1 .833 .362 Within Groups 1.617 198 Total 1.624 199 IRI Presentation Between Groups .120 1 7.441 .007 Within Groups 3.192 198 Total 3.312 199 IRI Overall Between Groups .365 1 20.094 .000 Within Groups 3.595 198 Total 3.960 199 Source: SPSS 20.0 6. Summary and Concluding Remarks The objective of the study is to investigate the content and presentation of CIR practices among public listed companies in Vietnam. The study was based on the analysis of websites of 200 listed companies in Vietnam securities market. The mean score of all items of the Internet Reporting Index (IRI) was 39.67. The mean scores for the content and presentation format items were 32.24 and 47.10 respectively. The results clearly suggest that in Vietnam, internet reporting is an emerging issue and there is ample room for improvements 52 in order to utilize the full potential of the internet. As more and more people in Vietnam are connecting themselves to the internet to get information, companies are expected to change their internet reporting practices, in terms of content and disclosure. To the extent that more extensive use of the internet for information disclosure can improve the efficiency of the corporate disclosure regime, it is expected that more companies will improve their internet reporting practices and will use the internet as an alternative channel to distribute information faster and less costly. The exploratory results of this study are constrained by several limitations. Therefore, generalizations of the findings should be made with caution. Since companies’ websites are regularly updated and upgraded, the results of this study represent only a snapshot of corporate internet reporting practices of Vietnamese listed companies. Therefore, a second- round rating for the same corporate websites in the future would enable to have comparable data and findings. 7. References Ashbaugh, H., Johnston, K. M., & Warfield, T. D. (1999). Corporate Reporting on the Internet. Accounting Horizons, 13(3), 241-257. Bagshaw, K. (2000). Financial Reporting on the Internet. Accountants’ Digest, Issue 429. The Institutes of Chartered Accountants of England and Wales, 2000. Barako, D. G. (2007). Determinants of voluntary disclosures in Kenyan companies annual reports. African Journal of Business Management, 1(5), 113-128. Craven, B. M., & Marston, C. L. (1999). 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List of Internet Reporting Index of Listed Firms in Vietnam (52 items) No. Item Content Reporting Corporate and Strategic Information (11 items) 1 Statement of strategy and objectives 2 Discussion on the impact of strategy on current results 3 Discussion on the impact of strategy on future results 4 Discussion of research and development activities 5 Statements of strategy improving business 6 Discussion of future product developments 7 Rate of return on expected projects 8 Descriptive information of marketing network (domestic market) 9 Descriptive information of marketing network (foreign market) 10 Discussion of competitive environment 11 General discussion of industry trends (past) Accounting and Financial Information (14 items) 1 Cash flow 2 Dividend policy 3 Market share analysis 4 Share price and volume of shares traded information 5 Main advantages 6 Weaknesses 7 Competitors analysis 8 Discussion of advertising, marketing activities 9 Discussion on the effects of inflation rates on current results 10 Discussion on the effects of foreign currency on current results 11 Discussion on the effects of interest rates on current results 12 Breakdown and analysis of sales and revenues 13 Breakdown and analysis of operating expenses 14 Breakdown and analysis of administrative expenses Forward Looking Information (8 items) 1 Forecast assumptions 2 General discussion of future industry trend 3 Discussion of external factors affecting the company’s future (economy/politics) 4 Forecast of cash flows 5 Discussion on future expenditure 55 No. Item 6 Discussion on the effects of interest rates on future operating activities 7 Discussion on the effects of inflation on future operating activities 8 Discussion on the effects of foreign currency on future operating activities Corporate Social Responsibility and Human Resource Information (9 items) 1 Employee training 2 Number of employees trained 3 Employee benefits 4 Labor protection policy 5 Environmental protection policy 6 Community policy 7 Data on accidents 8 Discussion of workplace safety 9 Discussion on the safety of the products Presentation Format Material Process-ability format (5 items) 1 Financial data in process-ability format (xls, txt, doc) 2 Format of annual report (pdf, http) 3 Version of annual report (English) 4 Version of the website (English) 5 Audio/Video files Technological Advantages and Users Supports (5 items) 1 Search engine 2 Site map 3 Links to related sites 4 Feedback 5 Frequently Asked Questions (FAQs)