A Survey of Voluntary Disclosure Practices in the Internet by Leading

 European Companies

Enrique Bonsón Pontebonson@uhu.es

Tomás Escobar Rodríguez tescrod@dee.upo.es

Previous research

Digital reporting evolution

The survey

Conclusions

Index

Previous research (I)

Study Scope Date Web Sites Full Accounts

Petravick & Gillet, 1996 US, Fortune 150 1996 69% 31%

Louwers et al., 1996 US, top 150 Fortune-500 1996 65% 23%

Gray & Debreceny, 1997 US, Fortune Industrial-50 1996 98% 36%

Lymer, 1998 UK, top 50 1997 92% 32%

Lymer & Tallberg, 1997 Finland, Helsinki S.E. 72 1997 90% 11%

Flynn & Gowthorpe, 1997 W, top 100 Fortune Global-500 1997 89% 39%

Sánchez Barrios, 1999 Spain, Ibex 35 1997 63% 20%

Previous research (II)Deller et al., 1998 Germany, DAX 100 1998 76% 30%

Deller et al., 1998 UK, FTSE 100 1998 85% 43%

Deller et al., 1998 US, S&P 100 1998 95% 84%

Craven & Marston, 1999 UK, top 200 1998 74% 33%

Taylor, 1998 W, 100 international companies 1998 100% 83%

Molero et al., 1999 Spain, Ibex 35 1998 83% 37%

Molero et al., 1999 Spain, Madrid S.E. 215 1998 45% 10%

Heldin, 1999 Sweden, Stockolm S.E., 60 1998 98% 83%

Previous research (III)

Pirchegger et al., 1999 Austria, Viena S.E., 32 1998 88% 84%

Gowthorpe & Amat, 1999 Spain, Madrid S.E., 379 1998 19% 5%

Lymer et al., 1999 W, 22 countries, 660 companies 1999 86% 20%

Trites, 1999 US-Can, NY-T-NASDAQ, 370 1999 69% 19%

Bonsón et al., 2000 EU-11, Eurostoxx 50 1999 100% 100%

1996 1997 1998 1999 2000 USA

Fortune50 98% Fortune100 99%

EUROPE U.K. 92% U.K.(206 companies) 74% Germany (DAX100) 76% Finland (72 companies) 90% Sweden (SSE) 98% Spain (IBEX35) 63% 83% 100% Spain (215 companies) 45% Eurostoxx50 100% Eurotop100 100%

PRESENCE IN THE WEB

98%

99%

92%

74%

76%

90%

83% 98%

63% 100%

45%

100%

100%

1996 1997 1998 1999 2000 USA

Fortune50 36% Fortune100 80%

EUROPE U.K.(FTSE50) 32% U.K.(206 companies) 33% Germany (DAX100) 30% Finland (72 comp.) 11% Sweden (SSE) 83% Spain (IBEX35) 20% 37% 94% Spain (215 comp.) 9% Eurostoxx50 100% Eurotop100 99%

ANNUAL REP.

Balance sheet 95% 74% 65% Income statement 95% 75% 63% Notes 92% 60% 42% Cash flow statement 92% 64% 30% Interim reports 97% 82% 73% Financial data time series 95% 28% 21% Press releases 88% 90% 86% Investor financial calendar 9% 18% 39% Current share price 77% 29% 46% E-mail to investor relations 34% 40% 31% Mailing list 12% 6% 11% FAQ 31% 8% 7%

Top 100 companies (1999) USA U.K Germany

Annual report 100% 99% Interim report 90% 64% Audit report 66% 53% Five years summary 62% 47% Financial Ratios 38% 24% IASC standards 8% 5% Format

PDF 88% 86% HTML 48% 49% Excel 12% 12% XBRL 0% 0%

Strategy 80% 54% Environmental reporting 40% 34% Shareholders’ structure 46% 31% Shareholders’ news 84% 83% Shareholders’ meetings 54% 34% Press releases 94% 94% Mailing lists 42% 28%

Eurostoxx50 (10/99) Eurotop100 (5/00)

Previous research

Digital reporting evolution

Index

First stage: colonization of the new media, web presence

Second stage: annual report dissemination

Third stage: voluntary disclosure

Digital reporting evolution

Second stage: annual report dissemination

Companies begin to make financial information available on the Internet. Electronic versions of printed annual reports (PDF).

Financial information access is improved (HTML)

Users are allowed to download information in spreadsheet files (EXCEL).

XBRL, the next step

Third stage: voluntary disclosureCompanies are interested in attracting new

investors world wide

This is the reason why:

Financial information provided is broadened

Companies provide non-financial information

ANNUAL REPORT

INTERIM REPORTS

FIVE YEARS SUMMARY

FINANCIALRATIOS

IASCSTANDARDS

STRATEGY

ENVIRONMENTALREPORTING

SHAREHOLDERS’STRUCTURE

SHAREHOLDERS’ NEWS

SHAREHOLDERS’ MEETINGS

PRESS RELEASES

MAILING LISTS

FORDWARD LOOKINGINFORMATION

HIGHER QUANTITY/QUALITY OF ACCOUNTING INFORMATION

STOCKQUOTES

INTELLECTUALCAPITAL

Previous research

Digital reporting evolution

The survey

Index

Voluntary disclosure = f ( S, Se, C )

Size

Sector

Country

Sample: Eurotop100 (April 2001) Variables: Country, Sector, Weight, Web site, Assets,

Sales, BS and IS, Auditors’ report, Iterim report, Previous years summary, Financial ratios, Forward-looking information, IASC standards, Strategy, Environmental information, Sh’ structure, Sh’ news, Sh´ meetings, Intel. Capital, Directors, Employees, W.W. Operat., Customers, Suppliers, Press releases, Mailing list.

3% 7% 3%7%

3%3%

1%4%

7%3%1%4%14%

4%1%

24%

11%

1%

1%

MINING

OIL & GAS

CHEMICALS

AEROSPACE

ELECTRONIC

AUTOMOBILE

HOUSEHOLD GOODS

BEVERAGES

FOOD PRODUCERS

PERSONAL CARE

PHARMACEUTICALS

GENERAL RETAILERS

ENTERTAINMENT & HOTELS

MEDIA & PHOTOGRAPHY

TELECOMUNICATION

ELECTRICITY

GAS DISTRIBUTION

BANKS

INSURANCE

COMPANIES BY SECTOR (%)

1% 3%13%

4%9%4%5%

33%

17%

11%

BELG

FIN

FRA

GER

ITA

NETH

SP

SWED

SWIT

UK

COMPANIES BY COUNTRY (%)

INFORMATION TOPICS

0%

20%

40%

60%

80%

100%

BS a

nd IS

Aud

itor r

epor

tIn

terim

repo

rtsTh

ree

(or m

ore)

...

Fina

ncia

l rat

ios

Fow

ard-

look

ing

IASC

Stra

tegy

Envi

ronm

ent

Sh’ s

truct

ure

Sh’ n

ews

Sh´ m

eetin

gsIn

tel.

Capi

tal

Dire

ctor

sEm

ploy

ees

W.W

. Ope

rat.

Cust

omer

sSu

pplie

rsPr

ess

rele

ases

Mai

ling

list

INFORMATION INDEX (ALL COMPANIES)

1%1% 3% 8%4%

19%

18%18%

11%

11%4% 1%1%

4 Points

5 Points

6 Points

7 Points

8 Points

9 Points

10 Points

11 Points

12 Points

13 Points

14 Points

15 Points

16 Points

0 2 4 6 8 10 12 14

MINING

OIL & GAS

CHEMICALS

AEROSPACE

ELECTRONIC

AUTOMOBILE

HOUSEHOLD GOODS

BEVERAGES

FOOD PRODUCERS

PERSONAL CARE

PHARMACEUTICALS

GENERAL RETAILERS

ENTERTAINMENT & HOTELS

MEDIA & PHOTOGRAPHY

TELECOMUNICATION

ELECTRICITY

GAS DISTRIBUTION

BANKS

INSURANCE

AVERAGE SCORE BY SECTOR

0 2 4 6 8 10 12 14

SIZE 1

SIZE 2

SIZE 3

SIZE 4

AVERAGE SCORE BY COMPANY SIZE

Size 1: 0,08 (Min) weight < 0,5786 (Av - Sd/2)Size 2: 0,5786 (Av - Sd/2) weight < 0,9757 (Av)Size 3: 0,9757 (Av) weight < 1,3728 (Av + Sd/2)Size 4: 1,3728 (Av + Sd/2) weight 4,30 (Max)

0 2 4 6 8 10 12 14

BELG

FIN

FRA

GER

ITA

NETH

SP

SWED

SWIT

UK

AVERAGE SCORE BY COUNTRY

Previous research

Digital reporting evolution

The survey

Conclusions

Index

Size, sector and country (sample)

Innovative forms of disclosure (slides, video, audio)

Continuous reporting ??

Corporate dialogue??

Conclusions