Corporate Internet disclosures during the coronavirus pandemic

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Corporate disclosures constitute the main means of communication between companies and their related parties, with the Internet being one of the most important. Although several studies have been conducted on the extent of disclosures on the Internet and the factors that affect it (Elsayed, Masry, & Elbeltagi, 2010; Botti, Boubaker, Hamrouni, & Solonandrasana, 2014; etc.), research during the crisis of the pandemic is limited. The purpose of this paper is twofold. On the one hand, it aims to examine the extent and quality of disclosures that companies provided on corporate websites during the COVID-19 pandemic. On the other hand, an effort is made to assess which factors affected the extent of disclosure. These factors focus on firm-specific characteristics (company size, leverage, profitability, auditing firm size) and core corporate governance attributes (board size, ownership concentration and chief executive officer duality). Results indicate that average disclosure was relatively high. Regression analysis shows that the level of disclosure was significantly positively associated with company size, profitability and board size. This indicates that during the pandemic, larger companies, more profitable and with more board members, disclosed more information on their websites. The results of the study may be of interest for clients, financial and credit analysts, investors, supervisory authorities as well as management, in their effort to improve corporate disclosures and the level of social responsibility.

Keywords: Financial Disclosures, Non-Financial Disclosures, Internet, Pandemic, Company Characteristics, Corporate Governance

Authors’ individual contributions: Conceptualization – S.T. and E.C.; Methodology – S.T. and E.C.; Formal Analysis – P.K. and S.T.; Investigation – P.K.; Writing – S.T. and P.T.; Supervision – S.T. and E.C.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M41, M14, G32, G34

Received: 15.10.2020
Accepted: 20.01.2021
Published online: 22.01.2021

How to cite this paper: Tasios, S., Chytis, E., Karametou, P., & Tagkas, P. (2021). Corporate Internet disclosures during the coronavirus pandemic. Corporate Board: Role, Duties and Composition, 17(1), 20-29. https://doi.org/10.22495/cbv17i1art2