Factors Determining Financial Reporting On The Internet By Banks In Bahrain

Abstract

A revolution in corporate reporting is about to engulf users of financial statements.  As elsewhere, companies in Bahrain have started making commercial use of Internet technology by presenting financial information to the users.   This paper examines the factors determining such financial reporting on the Internet by banks in Bahrain.  It also surveys  the current state of usage in a sample of 35 banks in Bahrain.  Discriminant analysis was performed and the results indicated that size (log of total assets) is the main factor determining the financial reporting on the Internet.  The type of bank, such as commercial banks with offshore business units is also another influencing factor. There is also some indication that profitability may contribute in such a decision.  However, the usage of this modern technology by banks is still limited but there is every indication that the phenomenal growth of the Internet will continue. Decision-makers increasingly are using the Internet as a new source of obtaining traditional information. In this regard Petravick and Gillet (1996) state that to meet the needs of a computer sophisticated generation and to provide easy, real time access to information, high-quality financial reports will have to be an integral part of every organization's Internet presence.