The financial reports via internet is a new field of wide research making breakthroughs on a daily basis, and are affected by many factors such as the social, cultural, institutional and legal factors, which in turn affect the popularity of the Internet in financial reporting. Meanwhile, It has been revealed that firms that report financial information on their websites are bigger and more powerful, it has ownership of more focused, they have more international investors, and more modern than companies that do not rely on the Internet. However, the prospect of having to publish financial information on the internet company does not rely solely on the individual characteristic, but the range of effects of interaction between fixed characteristics, the type of industry, and the state. Therefore, this study examine the influence of internet financial reports on the quality of financial reports in Libya Banking Sector. This study is a conceptual paper that reviewed the existing literatures on the types and level of internet financial disclosure of Libya Banking Sector. This study revealed that the type of disclosures that includes mandatory, voluntary and selective are variables that are essential in explaining the level of internet financial reporting disclosure. This study contributed to the body of relevant knowledge by extend the internet financial reporting studies in developing countries which has not been focus more by prior studies. In addition, the study extend the literature on the status of internet financial reporting in African countries, specifically in the Libya. Finally, it presents the clear snapshot on those factors influencing internet financial reporting in Libya.

Keywords : Internet Financial Reporting, Mandatory Disclosure, Voluntary Disclosure, Selective Disclosure, Libya.