Honors Theses

Date of Award

2001

Document Type

Undergraduate Thesis

Department

Accountancy

First Advisor

Marilyn Zarzeski

Relational Format

Dissertation/Thesis

Abstract

Investors and financial analysts rely considerably on corporate information to make business decisions. This study of financial and nonfmancial disclosure practices analyzes the influence that culture, firm size, and foreign sales might have over the information that companies choose to place on the web. Using over one hundred and fifty company websites across seven different countries, I developed a list of financial and nonfmancial disclosure categories to evaluate each company website. Statistical tests provide evidence that cultural variables, such as the degree of masculinity and individualism, as well as total sales volume have a significant influence over levels of nonfmancial disclosure. This result indicates to users and analysts that nonfinancial disclosure is more subject to cultural and size influence Xhon financial disclosure and that nonfinancial disclosure practices are in need of more standardization and scrutiny. The findings of this study of corporate website disclosures relate to the 2001 FASB study, entitled Improving Business Reporting: Insights into Enhancing Voluntary Disclosures, and are of particular importance to standard and rule setting organizations, such as the lASC. Paralleling the current trend toward globalization, companies that are listed on stock exchanges hope to move toward harmonization among disclosure practices, whether paper or web-based. Further research needs to be conducted regarding other cultural variables and firm characteristics and their influence over investor and analyst decisions.

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