This study was conducted to know the extent of web reporting practices in the Indian corporate sector and inter-sector comparison of web reporting practices. A sample of 50 companies from different sectors was covered for this purpose. The analysis of results of the study shows that about 80% of the sample companies provided mandatory and voluntary information. The banking sector provided financial information to a greater extent compared to the other sectors. Balance sheet and profit and loss account have been provided in a majority of the cases, and only a few companies provided the director’s report and auditor’s report. Most of the companies provided information about the company profile, company history, company products and services, etc. and did not give any relevant information from the user’s point of view. Results show that the Indian companies have started using the Internet as a medium for reporting. Though the percentage of companies giving information for investor’s use is not very high, there are chances of an increasing trend in the Indian corporate sector. The percentage of Indian companies reporting via Internet is low compared to other advanced countries, but will gain importance in the future. The paper suggests that greater stress should be given to providing up-to-date financial information and to including full annual report while presenting information on websites. Awareness should be created among various users regarding corporate web reporting, and users’ perception should be kept in mind while providing web disclosures.

Increased economic market and regulatory pressures are forcing the companies to accumulate and publish information regarding their financial performance, social and environmental initiatives, corporate governance and marketing ads, as well as other information with more frequency, details and a variety of formats. It is termed ‘corporate reporting’. Companies use various media to report their financial and non-financial performance. Traditionally, the companies employ print media as a crucial medium for corporate reporting. Though these paper-based reports have global acceptability, they may not be accessible on times interactive, or detailed as required. Increasingly, the emphasis has shifted towards a timelier, readily accessible, interactive and detailed medium for corporate reporting (Lymer et al., 1999). The Internet has been described as a new platform for disseminating financial as well as non financial information. It is a platform that exhibits distinctive and attractive features which make it an effective option, compared to the traditional ones. It is fast, cheap and increasingly accessible to shareholders and other stakeholders.

Web-based corporate reporting is quite popular during the present times. The corporate web reporting is consistent with the need to up-to-date information to investors and other user groups. Financial information disclosed on a company’s website can be accessed by many people anywhere in the world. Several studies show that the Internet is nowadays the main mode used to release and update corporate financial information in a timely fashion (Ashbaugh et al., 1999; Craven and Marston, 1999; Brennan and Hourigan, 2000; Debreceny et al., 2001; Xiao et al., 2002; and Marston 2003). Numerous surveys have been undertaken to study the current practices of web reporting internationally (for instance, Lymer and Tallberg, 1997, Ashbaugh et al., 1999; Craven and Marston, 1999; and Ettredge et al., 2001). However, there is a lack of published evidence on corporate reporting using the Internet in India.

The present study is limited to the reporting practices of the Indian companies providing information on their websites. A comprehensive qualitative and quantitative analysis of the Internet reporting practices is reported. An understanding of the present status of current practices will indicate whether improvements are needed to facilitate full utilization of this unique technology that has revolutionized the reporting practices.

Corporate Governance Journal, Corporate Governance Reforms, Financial Disclosures, Indian Companies, Financial Sector Reforms, Globalization, Information Asymmetries, Indian Corporate Morality, Market Mechanism, International Financial Reporting Standards, IFRS, Indian Accounting Standards, Economic Development, Financial Accounting Systems, Corporate Control Mechanisms.