The Effect of Internet Financial Reporting and Voluntary Disclosure on Trading Volume Activity

Abstract

The information and technology era directs most investors to identify the company through its website. This study aimed to examine the effect of Web-based company financial reports and voluntary disclosure on trading volume activity in Indonesian Stock Market with specific reference to the firms on the LQ45 index. This study uses multiple regression model and multivariate analysis on panel data to estimates the determinant of internet financial reports and voluntary disclosure through corporate social report publication. Our finding shows that mandatory financial reporting has no impact on trading volume activity. On the other hand, the publication of voluntary reporting has significant impact on trading volume activity. Keywords— Internet Financial Reporting; Voluntary Disclosure; Trading Volume Activity; LQ45 Index