Corporate governance and corporate internet reporting in Sub Saharan Africa: the case of Kenya and Tanzania

This study investigates corporate internet reporting (CIR) by Kenyan and Tanzanian listed companies and whether the level of CIR is related to corporate governance structures. We collect data over a four-year period from companies listed on the Nairobi Securities Exchange and the Dar es Salaam Securities Exchange. Panel data models (random effects) are employed for the analysis. Our results indicate that the level of CIR in both countries is high, but highest in Kenya. We find that CIR increases with foreign ownership, audit committee independence and financial expertise but decreases with domestic ownership concentration. We also show that the effects of ownership concentration are moderated by country-specific factors. Overall, the results demonstrate that effective governance structures may lead to higher levels CIR in sub Saharan Africans. Our study extends, as well as contributes to the existing literature by the examining the corporate governance-disclosure nexus relating to CIR in Sub-Saharan Africa. These findings have policy implications for African countries looking to attract foreign investment.