Reveals Factors Affecting Financial Reporting Through the Internet to Manufacturing Companies on the IDX

Oct 13, 2025 by windailys.com 3 views

Reveals Factors Affecting Financial Reporting Through the Internet to Manufacturing Companies on the IDX

In today's digital age, financial reporting via the internet (Internet Financial Reporting/IFR) has become increasingly popular among companies. IFR allows companies to distribute financial statements more quickly, efficiently, and easily accessible by various parties. However, what factors affect manufacturing companies listed on the Indonesia Stock Exchange (IDX) to do IFR? This study aims to analyze the effect of various factors on IFR, including company size, recording age, leverage, auditor reputation, foreign ownership, liquidity ratio, and profitability ratio.

Background of the Study

The development of information technology has revolutionized the way companies report their financial information. IFR has become a crucial aspect of corporate governance, allowing companies to provide transparent and accurate financial information to various stakeholders. However, the adoption of IFR is not uniform among companies, and various factors may influence a company's decision to implement IFR. This study aims to identify the factors that affect manufacturing companies listed on the IDX to do IFR.

Research Methodology

This study uses secondary data from 58 manufacturing companies listed on the IDX. The research method used is a causal design to analyze the relationship between dependent and independent variables. Sampling techniques are carried out based on certain criteria, and data analysis uses a quantitative approach which includes classic assumption tests, model feasibility tests, and hypothesis tests.

Results of the Study

The results showed that the size of the company, the age of recording, leverage, auditor's reputation, foreign ownership, liquidity, and profitability together had a significant effect on IFR. However, partially, only foreign ownership and profitability have a significant influence on IFR.

Deeper Analysis

Foreign Ownership

Companies with higher foreign ownership tend to be more open to IFR. This may be caused by more stringent international standards related to transparency and accountability, which encourages companies with foreign ownership to implement IFR. Foreign ownership can bring in new management practices, technologies, and expertise that can improve a company's financial reporting capabilities.

Profitability

A more profitable company tends to be more able to invest in the information and infrastructure technology needed for IFR. In addition, IFR can improve the positive image of companies in the eyes of investors and increase competitiveness in the global market. Profitable companies are more likely to have the resources and capabilities to implement IFR, which can lead to improved financial reporting and transparency.

Implications and Recommendations

The results of this study provide some important implications for manufacturing companies on the IDX, regulators, and investors.

Manufacturing companies on the IDX are expected to consider the factors that influence IFR to improve the quality of their financial reporting.
Regulators can encourage companies to implement IFR by providing supporting incentives and regulations.
Investors can use IFR to get more transparent and accurate financial information, so that it can make more appropriate investment decisions.

Conclusion

This study shows that IFR is an increasingly important trend in the business world. Improving the quality of IFR will have a positive impact on companies, investors, and the economy as a whole. By understanding the factors that affect IFR, companies can make informed decisions about implementing IFR and improving their financial reporting capabilities.

Tips for Manufacturing Companies

Re-evaluate the factors that influence IFR in your company.
Consider increasing transparency and accountability in financial reporting.
Invest in information technology that supports IFR.
Increase company profitability to support the application of IFR.

By implementing the right strategy, manufacturing companies on the IDX can use IFR to improve performance and competitiveness in the global market.

Limitations of the Study

This study has some limitations that should be noted. The study only focuses on manufacturing companies listed on the IDX, and the sample size is limited to 58 companies. Additionally, the study only examines the effect of seven factors on IFR, and other factors may also influence a company's decision to implement IFR.

Future Research Directions

Future research can build on this study by examining other factors that affect IFR, such as company size, industry, and market conditions. Additionally, future research can explore the impact of IFR on company performance and competitiveness in the global market.

References

[List of references cited in the study]

By understanding the factors that affect IFR, companies can make informed decisions about implementing IFR and improving their financial reporting capabilities. This study provides valuable insights into the factors that influence IFR and can help companies improve their financial reporting and transparency.

Introduction

Internet Financial Reporting (IFR) has become an essential aspect of corporate governance, allowing companies to provide transparent and accurate financial information to various stakeholders. However, many manufacturing companies listed on the Indonesia Stock Exchange (IDX) may have questions about IFR, its benefits, and how to implement it. This article aims to provide answers to frequently asked questions (FAQs) on IFR for manufacturing companies listed on the IDX.

Q: What is Internet Financial Reporting (IFR)?

A: IFR is the process of distributing financial statements and other financial information through the internet. It allows companies to provide transparent and accurate financial information to various stakeholders, including investors, analysts, and regulators.

Q: Why is IFR important for manufacturing companies listed on the IDX?

A: IFR is important for manufacturing companies listed on the IDX because it provides a platform for companies to disclose financial information in a timely and efficient manner. It also helps to improve transparency and accountability, which are essential for maintaining investor confidence and ensuring compliance with regulatory requirements.

Q: What are the benefits of IFR for manufacturing companies listed on the IDX?

A: The benefits of IFR for manufacturing companies listed on the IDX include:

Improved transparency and accountability
Enhanced investor confidence
Increased efficiency in financial reporting
Better decision-making by investors and analysts
Compliance with regulatory requirements

Q: What are the factors that affect IFR for manufacturing companies listed on the IDX?

A: The factors that affect IFR for manufacturing companies listed on the IDX include:

Company size
Recording age
Leverage
Auditor reputation
Foreign ownership
Liquidity ratio
Profitability ratio

Q: How can manufacturing companies listed on the IDX implement IFR?

A: Manufacturing companies listed on the IDX can implement IFR by:

Re-evaluating the factors that influence IFR
Considering increasing transparency and accountability in financial reporting
Investing in information technology that supports IFR
Increasing company profitability to support the application of IFR

Q: What are the implications of IFR for manufacturing companies listed on the IDX?

A: The implications of IFR for manufacturing companies listed on the IDX include:

Improved financial reporting and transparency
Enhanced investor confidence
Increased efficiency in financial reporting
Better decision-making by investors and analysts
Compliance with regulatory requirements

Q: What are the future research directions for IFR?

A: Future research directions for IFR include:

Examining other factors that affect IFR
Exploring the impact of IFR on company performance and competitiveness in the global market
Developing new technologies and tools to support IFR

Q: What are the limitations of this study?

A: The limitations of this study include:

The study only focuses on manufacturing companies listed on the IDX
The sample size is limited to 58 companies
The study only examines the effect of seven factors on IFR

Q: What are the recommendations for manufacturing companies listed on the IDX?

A: The recommendations for manufacturing companies listed on the IDX include:

Re-evaluating the factors that influence IFR
Considering increasing transparency and accountability in financial reporting
Investing in information technology that supports IFR
Increasing company profitability to support the application of IFR

By understanding the FAQs on IFR, manufacturing companies listed on the IDX can make informed decisions about implementing IFR and improving their financial reporting capabilities.