871
Views
0
CrossRef citations to date
0
Altmetric
Financial Economics | Research Article

Annual report readability and firms’ investment decisions

, & ORCID Icon
Article: 2296230 | Received 10 Aug 2023, Accepted 13 Dec 2023, Published online: 15 Jan 2024

References

  • Asare, S. K., & Wright, A. M. (2012). Investors’, auditors’, and lenders’ understanding of the message conveyed by the standard audit report on the financial statements. Accounting Horizons, 26(2), 193–217. https://doi.org/10.2308/acch-50138
  • Au, A., Thompson, P., & Yeung, M. C. H. (2006). Determinants of transparency for Singaporean listed companies. Journal of Management, Spirituality & Religion, 3(4), 282–304. https://doi.org/10.1080/14766080609518635
  • Barnett, A., & Leoffler, K. (1979). Readability of accounting and auditing messages. The Journal of Business Communication (1973), 16(3), 49–59. https://doi.org/10.1177/002194367901600305
  • Biddle, G. C., Hilary, G., & Verdi, R. S. (2009). How does financial reporting quality relate to investment efficiency? Journal of Accounting and Economics, 48(2-3), 112–131. https://doi.org/10.1016/j.jacceco.2009.09.001
  • Cazier, R. A., & Pfeiffer, R. J. (2016). Why are 10-K Filings So Long? Accounting Horizons, 30(1), 1–21. https://doi.org/10.2308/acch-51240
  • Cazier, R. A., & Pfeiffer, R. J. (2017). 10-K disclosure repetition and managerial reporting incentives. Journal of Financial Reporting, 2(1), 107–131. https://doi.org/10.2308/jfir-51912
  • Chow, H. K., & Pei, S. F. (2018). Financial sector in Singapore. In Routledge handbook of banking and finance in Asia (pp. 165–178).
  • Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of Management, 37(1), 39–67. https://doi.org/10.1177/0149206310388419
  • Courtis, J. K. (1995). Readability of annual reports: Western versus Asian evidence. Accounting, Auditing & Accountability Journal, 8(2), 4–17. https://doi.org/10.1108/09513579510086795
  • Courtis, J. K. (1998). Annual report readability variability: tests of the obfuscation hypothesis. Accounting, Auditing & Accountability Journal, 11(4), 459–472. https://doi.org/10.1108/09513579810231457
  • Dalwai, T., Chinnasamy, G., & Mohammadi, S. S. (2021). Annual report readability, agency costs, firm performance: an investigation of Oman’s financial sector. Journal of Accounting in Emerging Economies, 11(2), 247–277. https://doi.org/10.1108/JAEE-06-2020-0142
  • Ertugrul, M., Lei, J., Qiu, J., & Wan, C. (2017). Annual report readability, tone ambiguity, and the cost of borrowing. Journal of Financial and Quantitative Analysis, 52(2), 811–836. https://doi.org/10.1017/S0022109017000187
  • Eugene Baker, H., III,., & Kare, D. D. (1992). Relationship between annual report readability and corporate financial performance. Management Research News, 15(1), 1–4. https://doi.org/10.1108/eb028188
  • Grossman, S. J. (1980). On the Impossibility of Informationally Efficient Markets. ERN: Efficient Market Hypothesis Models (Topic).
  • Hassan, M. K., Abu Abbas, B., & Garas, S. N. (2018). Readability, governance and performance: a test of the obfuscation hypothesis in Qatari listed firms. Corporate Governance: The International Journal of Business in Society, 19(2), 270–298. https://doi.org/10.1108/CG-05-2018-0182
  • Huddart, S., Ke, B., & Shi, C. (2007). Jeopardy, non-public information, and insider trading around SEC 10-K and 10-Q filings. Journal of Accounting and Economics, 43(1), 3–36. https://doi.org/10.1016/j.jacceco.2006.06.003
  • Kintsch, W., & van Dijk, T. A. (1978). Toward a model of text comprehension and production. Psychological Review, 85(5), 363–394. https://doi.org/10.1037/0033-295X.85.5.363
  • Lee, T. A., & Tweedie, D. P. (1975). Accounting information: An investigation of private shareholder understanding. Accounting and Business Research, 6(21),3–17. https://doi.org/10.1080/00014788.1975.9728662
  • Lee, Y.-J. (2012). The effect of quarterly report readability on information efficiency of stock prices. Contemporary Accounting Research, 29(4), 1137–1170. https://doi.org/10.1111/j.1911-3846.2011.01152.x
  • Li, F. (2008). Annual report readability, current earnings, and earnings persistence. Journal of Accounting and Economics, 45(2-3), 221–247. https://doi.org/10.1016/j.jacceco.2008.02.003
  • Libby, R., Bloomfield, R. J., & Nelson, M. W. (2001). Experimental Research in Financial Accounting. Behavioral & Experimental Finance eJournal.
  • Lim, E. K. Y., Chalmers, K., & Hanlon, D. (2018). The influence of business strategy on annual report readability. Journal of Accounting and Public Policy, 37(1), 65–81. https://doi.org/10.1016/j.jaccpubpol.2018.01.003
  • Lo, K., Ramos, F., & Rogo, R. (2017). Earnings management and annual report readability. Journal of Accounting and Economics, 63(1), 1–25. https://doi.org/10.1016/j.jacceco.2016.09.002
  • Loughran, T., & Mcdonald, B. (2014). Measuring readability in financial disclosures. The Journal of Finance, 69(4), 1643–1671. https://doi.org/10.1111/jofi.12162
  • Masson, M. E. J., & Waldron, M. A. (1994). Comprehension of legal contracts by non-experts: Effectiveness of plain language redrafting. Applied Cognitive Psychology, 8(1), 67–85. https://doi.org/10.1002/acp.2350080107
  • Mc Laughlin, G. H. (1969). SMOG grading-A new readability formula. Journal of Reading, 12(8), 639–646. https://www.jstor.org/stable/40011226
  • Nguyen, D. V., Dang, D. Q., Pham, G. H., & DO, D. K. (2020). Influence of overconfidence and cash flow on investment in Vietnam. The Journal of Asian Finance, Economics and Business, 7(2), 99–106. https://doi.org/10.13106/jafeb.2020.vol7.no2.99
  • Nguyen, N. T. V., Nguyen, C. T. K., Ho, P. T. M., Nguyen, H. T., & Nguyen, D. van. (2021). How does capital structure affect firm’s market competitiveness? Cogent Economics & Finance, 9(1), 1–14. (ISSN 2332-2039, Taylor & Francis, Abingdon). https://doi.org/10.1080/23322039.2021.2002501
  • Nguyen, T. T., Ho, H. H., Nguyen, D. van, Pham, A. C., & Nguyen, T. T. (2021). The effects of business model on bank’s stability. International Journal of Financial Studies, 9(3), 46. https://doi.org/10.3390/ijfs9030046
  • Rennekamp, K. (2012). Processing fluency and investors’ reactions to disclosure readability. Journal of Accounting Research, 50(5), 1319–1354. https://doi.org/10.1111/j.1475-679X.2012.00460.x
  • Rutherford, B. A. (2003). Obfuscation, textual complexity and the role of regulated narrative accounting disclosure in corporate governance. Journal of Management and Governance, 7(2), 187–210. https://doi.org/10.1023/A:1023647615279
  • Shah, A. K., & Oppenheimer, D. M. (2007). Easy does it: The role of fluency in cue weighting. Judgment and Decision Making, 2(6), 371–379.
  • Smith, M., Jamil, A., Chik Johari, Y., & Ahmar Ahmad, S. (2006). The chairman’s statement in Malaysian companies: A test of the obfuscation hypothesis. Asian Review of Accounting, 14(1/2), 49–65. https://doi.org/10.1108/13217340610729464
  • Solnyshkina, M., Zamaletdinov, R., Gorodetskaya, L., & Gabitov, A. (2017). Evaluating text complexity and Flesch-Kincaid grade level. Journal of Social Studies Education Research, 8(3), 238–248. https://dergipark.org.tr/en/pub/jsser/issue/32449/360855
  • Spence, M. (1978). Job market signaling. Uncertainty in Economics, Academic Press, 283–306. https://doi.org/10.1016/B978-0-12-214850-7.50025-5
  • Wardle, M., & Mainelli, M. (2021). The global financial centres index 29. https://papers.ssrn.com/abstract=3869776
  • Washburn, M. (2017). The effect of auditing standard No. 5 On audit delay and audit fees.(Doctoral dissertation). Nova Southeastern University. U.S.A.
  • Worrall, A. P., Connolly, M. J., O'Neill, A., O'Doherty, M., Thornton, K. P., McNally, C., McConkey, S. J., & de Barra, E. (2020). Readability of online COVID-19 health information: A comparison between four English speaking countries. BMC Public Health, 20(1), 1635. https://doi.org/10.1186/S12889-020-09710-5
  • You, H., & Zhang, X. (2008). Financial reporting complexity and investor underreaction to 10-K information. Review of Accounting Studies, 14(4), 559–586. https://doi.org/10.1007/s11142-008-9083-2
  • Yu, C. H., & Miller, R. C. (2010). Enhancing web page readability for non-native readers. Conference on Human Factors in Computing Systems - Proceedings, 4, 2523–2532. https://doi.org/10.1145/1753326.1753709