Abstract

The advent of the Internet has brought about a transformation in the conventional methods of disseminating company information, presenting corporations with new channels of engagement with investors. Through an analysis of domestic firms listed on the Philippine Stock Exchange (PSE) during the period from 2018 to 2019, this study has probed the Voluntary Disclosure Index (VDI) as an indicator of Internet reporting, discovering that it is influenced by various characteristics of the firm, such as profitability, capital structure, and leverage. Nonetheless, the evidence supporting the impact of internet reporting on market performance remains limited. The objective of this research was to investigate the influence of Internet financial reporting (IFR) on three major market performance indicators: (a) Stock Price, (b) Stock Returns, and (c) Company Value, utilizing the weighted voluntary indexes derived from the VDI checklist. Market data pertaining to 58 publicly listed Philippine companies across various sectors were collected from the PSE database. The study’s findings suggest that there are no significant relationships between the domains of the disclosure index and market performance. However, it was observed that the technological features of a company’s website can positively influence earnings per share (EPS). By shedding light on the VDI within the context of Philippine
companies, this paper makes a valuable contribution to the existing literature. Furthermore, the insights gained from this research could assist regulatory bodies and companies in formulating pertinent policies concerning internet reporting, thereby enhancing corporate governance and the practices of publicly listed companies in the Philippines.