Opinion Article Open Access

Evaluating Internet Based Financial Reporting Index on the Website of Indonesian Insurance Company

Abstract

With the development of internet technologies, communication via the Internet has been adopted by the company as an important tool to provide information. The development of information technology, especially the Internet has affected the traditional form of presenting and preparing the financial statements or on the so-called Internet Financial Reporting (IFR). The efforts of the companies are for reducing information asymmetry by utilizing company's website to disclose information related to the company. This research aimed to determine the relationship of Internet Financial Reporting Index to the level of popularity of a website based on the Indonesian insurance company. The data used in this study are life insurance and general insurance companies by the number of samples of 109 companies in 2013. Spearman correlation test is used to determine the relationship IFRI with popularity website, the size of company’s website with popularity website and IFRI with company’s assets. While the Two independent sample test is used to determine differences IFRI between life insurance and general insurance sectors. The results of this study indicate that there is a significant relationship between IFRI and popularity website, the size of company’s website with popularity website and IFRI with company’s assets.. And there is a significant difference IFRI between life insurance and general insurance companies.

BENYAMIN ELIEZER PASCARENO  and BUDI HERMANA

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