Abstract:
This study investigates how corporate governance characteristics—
specifically board attributes and audit committee attributes—affect firm
value, with Corporate Internet Reporting (CIR) examined as a mediating
mechanism among listed non-financial companies in Sri Lanka. Using a
quantitative, deductive approach, the study analyzes cross sectional
secondary data from 97 firms for the 2022/23 period, obtained from annual
reports and corporate websites. Partial Least Squares Structural Equation
Modeling (PLS SEM) is employed to assess the relationships among
governance mechanisms, CIR disclosure, and firm value measured by Tobin’s
Q. The results show that board characteristics exert a significant positive
effect on both CIR practices and firm value, with CIR partially mediating the
relationship between board characteristics and firm value. In contrast, audit
committee attributes do not significantly influence CIR or firm value, and no
mediating effect is observed. The study contributes to the literature by
empirically validating CIR as a governance driven signaling mechanism in an
emerging market context and provides practical insights for regulators and
corporate leaders seeking to strengthen board effectiveness, enhance
transparency, and improve investor confidence.
