Malaysian companies' use of the internet for investor relations

Purpose - This study focuses on Malaysian companies because of the confidence shown by the international business community in what is considered to be the best country for corporate governance practice. Additionally, the Malaysian stock market is considered to be the largest stock market in terms of market capitalization in Asia. The primary objective of this study is to investigate the utilization of the internet by Malaysian-listed companies for investor information or communication. It also examines the content of such investor relations (IR) information compared with similar web sites from other parts of the world. Design/methodology/approach - The sample for the study consists of 100 stock market index- linked firms listed on the Kuala Lumpur Stock Exchange. Findings - Using a disclosure index for measuring investor information disclosure published in the companies' web sites, this study revealed that only 70 firms provided investor-related materials on their web sites. The highest-ranking investor-relations item was the background of the companies. Originality/value - The results confirm that a gap exists between developed countries and developing countries with respect to the utilization of the internet for investor-relations purposes. This study also provides evidence that governing bodies in East Asia - such as the Securities Commission, the Stock Exchange, and the Accounting Standard Board - should encourage (and, if necessary, enforce) the publication of IR information on company web sites.