JRAA Vol.1 No. 3, Nov 2014 INTERNET FINANCIAL REPORTING (IFR) DAN PENGARUHNYA TERHADAP COST OF EQUITY CAPITAL (COE)

INTERNET FINANCIAL REPORTING (IFR) DAN PENGARUHNYA TERHADAP COST OF EQUITY CAPITAL (COE)

Abstract

This study examines the effect of disclosing financial information in the form of financial reporting via the internet on the cost of equity capital. Transparent disclosure of financial information will reduce information asymmetry, thus reducing the cost of capital. The research was conducted on companies that went public on the IDX and made disclosure of financial information throughout the year 2009-2010. The number of samples of 154 companies was determined using purposive sampling technique. The results showed that Internet Financial Reporting had a significant negative effect on the cost of equity capital.