In this paper, certain attention should be paid to such issues as Internet financial reporting and fraudulent financial reporting in order to comprehend if there is a certain impact of the partial disclosure of financial reporting on the investors. The main research question is based on the clarification of the differences between the chosen two types of financial reporting and their connection with investors. Can it happen that the partial disclosure of Internet and fraudulent financial reporting types could influence the investors in different ways? This question, as well as its answers, is important in the field of business and economics because it helps to enumerate the benefits and shortages of financial reporting and identify the conditions under which the process of disclosure of organizational financial statuses to investors and the government could occur. Financial reporting could be of different types, and each type has its own impact on the investors and other stakeholders.
The main hypothesis is that there is a difference between the internet and fraudulent financial reporting impacts on the investors. It could be tested with the help of various sources found at libraries and online. First of all, it is necessary to give a clear definition of what financial reporting actually is and what the explanations to the Internet and fraudulent financial reporting are. Taking into consideration that fraudulent financial report is the way of how different people could mislead each other in terms of their actual financial affairs (Huang et al. 4360) and Internet financial reporting is based on the idea of a total disclosure (Ojah and Mokoaleli-Mokoteli 69), it is wrong to believe that these two types could be interchanged or misunderstood. Therefore, their impacts on the investors, as well as the impact of the partial disclosure of financial reporting, could vary considerably.
Second, the identification of partial disclosure should occur. Fraudulent and Internet financial reporting have different forms of disclosure. Internet financial reporting deals with a total disclosure that allows sharing all pieces of information and reducing the development of possible informative asymmetry between shareholders and managers (Ojah and Mokoaleli-Mokoteli 69). Fraudulent financial reporting includes wrong or inappropriate disclosure that misleads managers and creates situations that cannot be controlled or explained (Huang et al. 4361). Therefore, partial disclosure may occur in both types under consideration.
Finally, the comparison of outcomes is required in order to clarify if the investors are under a threat of being partially informed, if the threat could be overcome and if there are the methods to solve the problems that could be caused by the partial disclosure. To complete this kind of work, it is not enough to take some facts from books or academic journals. It is also effective to rely on case studies or newspapers’ articles in order to find out how different companies cope with partial disclosure, what steps are taken to predict such financial reporting outcomes, and why it is important to follow the conditions under which financial reporting systems could be developed.
In general, the project should be based on several powerful definitions and explanations. Besides, academic sources and real-life examples could strengthen the work. Finally, personal evaluation and comparison cannot be avoided. As soon as these steps are taken and appropriate sources are chosen, the hypothesis could be tested, and the research questions could be answered in a clear way.
Works Cited
Huang, Shin-Ying, Rua-Huan Tsaih, and Fang Yu. “Topological Pattern Discovery and Feature Extraction for Fraudulent Financial Reporting.” Expert Systems with Applications, vol. 41, 2014, pp. 4360-4372.
Ojah, Kalu, and Thabang Mokoaleli-Mokoteli. “Internet Financial Reporting, Infrastructures and Corporate Governance: An International Analysis.” Review of Development Finance, vol. 2, 2012, pp. 69-83.