An Analysis of the Readability of the Chairman’s Statement in South Africa
Board members and the chairman of the board must provide shareholders and other stakeholders with annual reports that include the chairman’s statement. The statement provides an important message to stakeholders concerning financial performance, non-financial information and future outlook of the co...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-03-01
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| Series: | Risks |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-9091/11/3/54 |
| _version_ | 1797609130080337920 |
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| author | Sinethemba Mankayi Frank Ranganai Matenda Mabutho Sibanda |
| author_facet | Sinethemba Mankayi Frank Ranganai Matenda Mabutho Sibanda |
| author_sort | Sinethemba Mankayi |
| collection | DOAJ |
| description | Board members and the chairman of the board must provide shareholders and other stakeholders with annual reports that include the chairman’s statement. The statement provides an important message to stakeholders concerning financial performance, non-financial information and future outlook of the company. Stakeholders are concerned about the transparency and usefulness of the disclosed as this would have an impact on whether the chairman’s message is readable or not. The purpose of this study is to evaluate whether messages from the chairman of the board are readable or not. A sample of 40 Johannesburg Stock Exchange listed companies, for the financial period ending 2021, was selected to meet the study objectives. The Gunning Fog Index (Fog index) was applied to assess the readability of the chairman’s statement. The study found that it was difficult to read the chairman’s statements for the selected corporations and South African companies. |
| first_indexed | 2024-03-11T05:57:12Z |
| format | Article |
| id | doaj.art-53396fb9fae6421fa6785fdb89396c45 |
| institution | Directory Open Access Journal |
| issn | 2227-9091 |
| language | English |
| last_indexed | 2024-03-11T05:57:12Z |
| publishDate | 2023-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj.art-53396fb9fae6421fa6785fdb89396c452023-11-17T13:41:43ZengMDPI AGRisks2227-90912023-03-011135410.3390/risks11030054An Analysis of the Readability of the Chairman’s Statement in South AfricaSinethemba Mankayi0Frank Ranganai Matenda1Mabutho Sibanda2School of Accounting, Economics and Finance, University of KwaZulu-Natal, Westville Campus, University Road, Westville, Private Bag X54001, Durban 4000, South AfricaSchool of Accounting, Economics and Finance, University of KwaZulu-Natal, Westville Campus, University Road, Westville, Private Bag X54001, Durban 4000, South AfricaSchool of Accounting, Economics and Finance, University of KwaZulu-Natal, Westville Campus, University Road, Westville, Private Bag X54001, Durban 4000, South AfricaBoard members and the chairman of the board must provide shareholders and other stakeholders with annual reports that include the chairman’s statement. The statement provides an important message to stakeholders concerning financial performance, non-financial information and future outlook of the company. Stakeholders are concerned about the transparency and usefulness of the disclosed as this would have an impact on whether the chairman’s message is readable or not. The purpose of this study is to evaluate whether messages from the chairman of the board are readable or not. A sample of 40 Johannesburg Stock Exchange listed companies, for the financial period ending 2021, was selected to meet the study objectives. The Gunning Fog Index (Fog index) was applied to assess the readability of the chairman’s statement. The study found that it was difficult to read the chairman’s statements for the selected corporations and South African companies.https://www.mdpi.com/2227-9091/11/3/54chairman’s statementreadabilityfog indexJSE |
| spellingShingle | Sinethemba Mankayi Frank Ranganai Matenda Mabutho Sibanda An Analysis of the Readability of the Chairman’s Statement in South Africa Risks chairman’s statement readability fog index JSE |
| title | An Analysis of the Readability of the Chairman’s Statement in South Africa |
| title_full | An Analysis of the Readability of the Chairman’s Statement in South Africa |
| title_fullStr | An Analysis of the Readability of the Chairman’s Statement in South Africa |
| title_full_unstemmed | An Analysis of the Readability of the Chairman’s Statement in South Africa |
| title_short | An Analysis of the Readability of the Chairman’s Statement in South Africa |
| title_sort | analysis of the readability of the chairman s statement in south africa |
| topic | chairman’s statement readability fog index JSE |
| url | https://www.mdpi.com/2227-9091/11/3/54 |
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