Examine the relationship between internet financial reporting and the frequency of stock trading

Oct 13, 2025 by pynkocean.com 148 views

Introduction

In today's digital age, the way companies disclose their financial information and present it online has become a crucial aspect of their success in the stock market. The Indonesia Stock Exchange (IDX) is one of the largest stock exchanges in Southeast Asia, and companies listed on it are constantly seeking ways to increase their attractiveness to investors. This study aims to explore the influence of internet-based financial statements and the level of information disclosure on the website on the frequency of the company's stock trading. The focus of this research is on companies in the property and real estate sectors listed on the IDX during the 2012 to 2014 period.

Research Background

The property and real estate sectors are among the most popular sectors in the IDX, with many companies listed on the exchange. However, the frequency of stock trading in these sectors is often influenced by various factors, including the level of transparency and disclosure of information. In recent years, there has been a growing trend towards online financial reporting, with many companies uploading their financial statements and other relevant information on their websites. However, the impact of this trend on the frequency of stock trading is not yet fully understood.

Research Objectives

The main objective of this study is to investigate the influence of internet-based financial statements and the level of information disclosure on the website on the frequency of the company's stock trading. Specifically, this study aims to:

Examine the relationship between internet financial reporting and the frequency of stock trading
Investigate the relationship between the level of disclosure of website information and the frequency of stock trading
Analyze the simultaneous effect of internet financial reporting and the level of disclosure of website information on the frequency of stock trading

Methodology

This study uses a quantitative approach, with a sample of 35 companies in the property and real estate sectors listed on the IDX during the 2012 to 2014 period. The data analysis method used is multiple linear regression, with the help of SPSS software. The independent variables used in this study are internet financial reporting (IFR) and the level of disclosure of website information (TPIW), while the dependent variable is the frequency of the company's stock trading.

Research Variables

In this study, there are three types of variables used:

Internet Financial Reporting (IFR): This refers to the extent of the company's financial statements uploaded and available on the internet, and how well the information is presented digitally.
The Level of Disclosure of Website Information (TPIW): This refers to how much information revealed by companies on their website, including financial information, company policies, and the latest news.
Frequency of Stock Trading: This refers to how often the company's shares are traded on the exchange.

Population and Sample

During the study period, there were 46 property and real estate companies listed on the IDX. However, based on certain criteria, the number of samples used in this study was 35 companies. The selection of this sample was carried out to ensure that the data analyzed were relevant and representative.

Research Results

The results of this study revealed several important findings:

IFR Negative Effects: Internet-based financial statements turned out to have an insignificant negative influence on the frequency of the company's stock trading. This shows that although financial information can be accessed online, this does not always encourage investor interest in conducting more active stock trading.
Positive Effects of TPIW: Conversely, the level of information disclosure on the website has a positive and significant effect on the frequency of the company's stock trading. This means that the more information expressed on the website, the higher the possibility of the company's shares traded. Investors tend to be more interested in transparent companies and provide complete information.
Simultaneous Effect: Both internet financial reporting and the level of disclosure of website information have a significant significant effect on the frequency of stock trading. This confirms the importance of these two aspects in increasing the company's attractiveness in the eyes of investors.

Additional Analysis and Explanation

This finding opens a broader discussion room regarding the importance of transparency and disclosure of information in the context of the capital market. Investors are increasingly oriented to clear information and easily accessible. In the current digital era, companies that are unable to meet the expectations are at risk of loss of attractiveness in the market.

Stock performance is not only influenced by the company's financial performance, but also by how the information is conveyed to the public. Therefore, companies need to pay attention to their communication strategies and disclosure of information. Optimizing online financial statements and increasing the level of information disclosure on the website can be a strategic step in attracting the attention of investors, which eventually has the potential to increase the frequency of stock trading.

Conclusion

In conclusion, this study provides evidence that internet financial reporting and the level of disclosure of website information have a significant impact on the frequency of stock trading. The findings of this study have important implications for companies in the property and real estate sectors listed on the IDX. By optimizing their online financial statements and increasing the level of information disclosure on their website, companies can increase their attractiveness to investors and ultimately improve their stock performance.

Recommendations

Based on the findings of this study, the following recommendations are made:

Companies should prioritize transparency and disclosure of information: Companies should ensure that their financial statements and other relevant information are easily accessible and presented in a clear and concise manner.
Companies should optimize their online financial statements: Companies should ensure that their online financial statements are up-to-date and presented in a user-friendly format.
Companies should increase the level of information disclosure on their website: Companies should ensure that their website provides complete and accurate information about their financial performance, company policies, and the latest news.

By following these recommendations, companies can increase their attractiveness to investors and ultimately improve their stock performance.

Q: What is the main objective of this study?

A: The main objective of this study is to investigate the influence of internet-based financial statements and the level of information disclosure on the website on the frequency of the company's stock trading.

Q: What are the independent variables used in this study?

A: The independent variables used in this study are internet financial reporting (IFR) and the level of disclosure of website information (TPIW).

Q: What is the dependent variable used in this study?

A: The dependent variable used in this study is the frequency of the company's stock trading.

Q: What is the sample size used in this study?

A: The sample size used in this study is 35 companies in the property and real estate sectors listed on the Indonesia Stock Exchange (IDX) during the 2012 to 2014 period.

Q: What is the data analysis method used in this study?

A: The data analysis method used in this study is multiple linear regression, with the help of SPSS software.

Q: What are the findings of this study?

A: The findings of this study are:

IFR Negative Effects: Internet-based financial statements turned out to have an insignificant negative influence on the frequency of the company's stock trading.
Positive Effects of TPIW: The level of information disclosure on the website has a positive and significant effect on the frequency of the company's stock trading.
Simultaneous Effect: Both internet financial reporting and the level of disclosure of website information have a significant significant effect on the frequency of stock trading.

Q: What are the implications of this study?

A: The implications of this study are:

Importance of transparency and disclosure of information: Investors are increasingly oriented to clear information and easily accessible.
Need for companies to optimize their online financial statements: Companies should ensure that their online financial statements are up-to-date and presented in a user-friendly format.
Need for companies to increase the level of information disclosure on their website: Companies should ensure that their website provides complete and accurate information about their financial performance, company policies, and the latest news.

Q: What are the recommendations of this study?

A: The recommendations of this study are:

Companies should prioritize transparency and disclosure of information: Companies should ensure that their financial statements and other relevant information are easily accessible and presented in a clear and concise manner.
Companies should optimize their online financial statements: Companies should ensure that their online financial statements are up-to-date and presented in a user-friendly format.
Companies should increase the level of information disclosure on their website: Companies should ensure that their website provides complete and accurate information about their financial performance, company policies, and the latest news.

Q: What are the limitations of this study?

A: The limitations of this study are:

Sample size: The sample size used in this study is relatively small.
Time period: The time period used in this study is limited to 2012 to 2014.
Sector: The study only focuses on the property and real estate sectors.

Q: What are the future research directions?

A: The future research directions are:

Investigating the influence of internet financial reporting and the level of disclosure of website information on the frequency of stock trading in other sectors: Future studies can investigate the influence of internet financial reporting and the level of disclosure of website information on the frequency of stock trading in other sectors.
Examining the impact of social media on the frequency of stock trading: Future studies can examine the impact of social media on the frequency of stock trading.
Investigating the role of corporate governance in the frequency of stock trading: Future studies can investigate the role of corporate governance in the frequency of stock trading.