THE INFLUENCE OF TECHNOLOGICAL FACTORS ON THE INTERNET FINANCIAL REPORTING IN THE LIBYAN BANKING SECTOR: MODERATING EFFECT OF CORPORATE GOVERNANCE

For several decades, a lot of research has been carried out on the quality, methods and significance of internet financial reporting. However, most of the prior studies on IFR were declined towards exploratory and descriptive methods. Hence, the studies failed to explained technology factors empirically in terms of technology resources, human resources and users’ readiness towards IFR. Therefore, this study empirically examines the influence of technological factors on the IFR with the moderating effect of corporate governance. Data were collected from the users of internet financial reporting using clustered and simple random sampling. Meanwhile, 212 questionnaires were retrieved that represent 53% response rate. The data were analysed using Structural Equation Modelling (PLS-SEM). The findings showed that technology factors (users’ readiness, technology and human resources) have statistically significant relationship with internet financial reporting of Libyan Banking Sector. This indicates that users’ readiness, human resources and technology resources are the predictor for internet financial reporting. Base on the moderating effect, it was revealed that corporate governance only moderates the relationship between users’ readiness and internet financial reporting. The results of our survey indicate continued progress in the area of corporate reporting over the Internet. Almost all the companies considered in this study have a section within their Website, which is used to present financial information. The study recommend that stakeholders must consider the factors analyzed in this study for more effective use of internet financial reporting most especially in Libyan Banking Sector.JEL: G21; O14; O15  Article visualizations

HAVE THE AUDITORS’ POLICIES AND PRACTICES AND CORPORATE GOVERNANCE INFLUENCED THE INTERNET FINANCIAL REPORTING? - AN INSIGHT FROM LIBYAN BANKING SECTOR

The use of internet for financial reporting has grown increasingly to the extent that many firms have designed a website for publication of their financial data. Many organizations have accepted the internet as a useful tool for informing prospective and existing investors of the financial performance of the companies. However, it has been reported that the internet financial reporting creates several challenges for the companies and their auditors as well as the regulators. Therefore, this study examines the impact of auditors’ policies and practice factor; corporate governance practices and technology factors towards internet financial reporting in the Libyan banking sectors. Data were collected from the users of internet financial reporting using systematic random sampling. Meanwhile, 194 questionnaires were used for further analysis represent 65% response rate. The data were analysed using Structural Equation Modelling (CB-SEM). The findings indicated that auditors’ policies and practices; technology factors and corporate governance have statistically significant influence on internet financial reporting of Libyan Banking Sector. This indicates that auditors’ policies and practices; corporate governance and technology factors are the predictor for internet financial reporting. The results of study also indicate continued progress in the area of corporate reporting over the Internet. Almost all the companies considered in this study have a section within their website, which is used to present financial information. The study also recommended that the required expertise from the company needed to keep information updated to be of use with adequate security of information on the website. Finally, Libyan auditors should face the challenges of internet financial reporting as soon as possible, because their clients use the internet for their financial reporting purposely to serve the stakeholder interest. JEL: M40; G34; G21  Article visualizations