Online financial disclosure and firms’ performance

Abstract

Purpose The purpose of this paper is to investigate the association between online financial disclosure (OFD) and firms’ performance in the Gulf Cooperation Council (GCC). Design/methodology/approach Extensive literature review was carried out and a checklist of 90 items (71 for content and 19 for presentation) was developed to measure the level of OFD by the firms that are listed in financial sectors of the GCC Bourses. Findings The findings show that the overall OFD in GCC is 77 percent. The results indicate a positive association between OFD and firms’ performance. Practical implications The study recommends that regulatory bodies should develop a guideline of disclosing information through the internet in order to enhance the corporate transparency and performance among the GCC listed companies leading to reasonable economic decision making. Originality/value Additionally, the study contributes to financial reporting and performance literature relating to the GCC countries.