Big data analytics of corporate internet disclosures

Purpose - This study investigates the extent and characteristics of corporate Internet disclosure via companies’ websites as well via social media and networks sites in the four leading English speaking stock markets, namely Australia, Canada, the United Kingdom, and the United States.

Design/methodology/approach – A disclosure index comprising of a set of items that encompass two facets of online disclosure, namely company websites and social media sites, is used. The paper adopts a data science approach to investigate corporate Internet disclosure practices among top listed firms in Australia, Canada, UK, and USA.

Findings – The results reveal the underlying relations between the determining factors of corporate disclosure, i.e. profitability, leverage, liquidity, and firm size. Profitability in its own has no great effect on the degree of corporate Internet disclosure whether via company websites or social media sites. Liquidity has an impact on the degree of disclosure. Firm size and leverage appear to be the most important factors driving better disclosure via social media. American companies tend to be on the cutting edge of technology when it comes to corporate disclosure.

Practical implications - The paper provides new insights into corporate Internet disclosure that will benefit all stakeholders with an interest in corporate reporting. Social media is an influential means of communication that can enable corporate office to get instant feedback enhancing their decision making process.

Originality/value – To the best of our knowledge, this study is amongst few studies of corporate disclosure via social media platforms. We have adopted disclosure index incorporating social media as well as applying data science approach in disclosure in an attempt to unfold how accounting could benefit from data science techniques.