Abstract

Internet financial reporting is gradually removing the paper-based report and increases the number of audience that could access the reports. The reporting entity can benefit from cost saving and improve their financial reporting strategies. Financial statements users can benefit by getting financial information in more breadth and depth that is, information consumers can obtain financial information more easily than before. In Nigeria collecting annual reports from companies have not been easy; hard copies of annual reports were rarely dispensed, and when dispense not everybody can get them. The internet as a unique information dissemination tool in recent time encourages flexible forms of presentation and permits communication with an unlimited number of potential and existing shareholders.This study examined the determinants of internet financial reporting of deposit money banks in Nigeria. Secondary sources of data was used, and checklist technique was employed to measure internet financial reporting index of the sample banks, for a period of 5 years (2010-2014). Correlation research design and the panel regression technique of data analysis were adopted. The study found a significant positive association between firm size, auditor type and profitability and internet financial reporting proxy. The study concludes that bank profitability and size are a significant determinants of internet financial reporting (in terms of contents and presentation) in the Nigerian banking industry during the period covered by the study. The study on the other hand concludes that the type of auditor did not significantly determine the contents and presentation of financial reports on internet by Nigerian banks. Specifically, the study is of the opinion that profitability and size of the firms are a critical factor in promoting reporting on internet, which improve transparency of the reports and minimizes information asymmetry as well as the agency cost. The study recommends that the regulators of the Nigerian banking industry should make policy that could encourage reporting on internet and possible regulations of internet financial reporting. Managements of the deposit money banks in Nigeria should increase efforts towards creating a user friendly website for reporting financial and corporate activities for the wider audience.