Volume 14, Number 1, June 2019
| Internet Financial Reporting and Expected Stock Return |
Mohammed M. Yassin¹*, Esra’a Al-Khatib²
Abstract
This study aimed at testing the efficiency of capital markets, through testing the effect of internet financial reporting (IFR) and its components – content and format on the expected stock return. The sample consisted of the public shareholding companies listed in Amman Stock Exchange (ASE) in 2017. IFR index consisted of 30 attributes (12 for content and 18 for format) and the expected stock return was estimated using previous day’s stock return, risk, and trading volume. An OLS analysis was used to test the study’s hypothesis and found that investors depend heavily on IFR to make their investment decisions.The results provide a basis for mapping existing and future studies on Internet reporting and constructing scenarios of future Internet financial reporting. Our study contributes to the emerging literature by expanding our understanding of how the investors can depend heavily on IFR to make their investment decisions. The results should be of interest to the public shareholding companies, regulators in Jordan, and other jurisdictions planning internet financial reporting initiatives.
Keywords: Amman Stock Exchange, Expected Stock Return, Internet Financial Reporting, Jordan, Market Efficiency, Voluntary Disclosure.
JEL Classification: M41, G39
¹ Associate professor in accounting at Al-Zaytoonah University of Jordan, P.O.Box 130 Amman 11733, Jordan* E-mail: mohammed.yassin@zuj.edu.jo
² Assistant professor in accounting at Al-Zaytoonah University of Jordan, P.O.Box 130 Amman 11733, Jordan, E-mail: e.alkhatib@zuj.edu.jo