On the Determinants of Internet-Based Disclosure of Government Financial Information

Internet has become a major channel for communications between government and citizens. With the Regulation of the People´s Republic of China on the Disclosure of Government Information coming into force as of May 1st, 2008, more and more local government in China present financial information at their websites. This paper investigates the determinants of disclosure of financial information of Local Government in China on the Internet. Results indicate that the content of Internet Financial Reporting is positively related to the size, wealth and type of local government, while the accessibility of Internet Financial Reporting is positively related to the size of local government, income per capita of country resident, financial condition of local government and the type of local government. These results can provide us a revelation to the research and practice of disclosure of financial information of local government.