Annual report readability and firms’ investment decisions
AbstractAn easy-to-read report may carry positive information for decision making and conversely. In that spirit, this paper investigates the relationship between the readability of companies’ annual reports, defined as the easiness to read, understand, and extract information from the reports, and...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2024-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2023.2296230 |
| _version_ | 1797354382212202496 |
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| author | Nam Huong Dau Duy Van Nguyen Hai Thi Thanh Diem |
| author_facet | Nam Huong Dau Duy Van Nguyen Hai Thi Thanh Diem |
| author_sort | Nam Huong Dau |
| collection | DOAJ |
| description | AbstractAn easy-to-read report may carry positive information for decision making and conversely. In that spirit, this paper investigates the relationship between the readability of companies’ annual reports, defined as the easiness to read, understand, and extract information from the reports, and investment decisions of Singapore companies. Empirical results with an DGMM analysis on 251 domestic companies listed on the Singapore Stock Exchange (SGX) show a positive relationship between the readability of annual reports this year and investments next year. As such, reports’ readability can serve as a signal significant to predict companies’ future investments. Our findings are consistent with signaling theory and contribute significantly to the literature for empirical investigations on the relationship of annual reports’ readability and firms’ investment decisions. |
| first_indexed | 2024-03-08T13:49:40Z |
| format | Article |
| id | doaj.art-cefeb91f611346a193098b6e73dba8ce |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-03-08T13:49:40Z |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-cefeb91f611346a193098b6e73dba8ce2024-01-16T06:55:45ZengTaylor & Francis GroupCogent Economics & Finance2332-20392024-12-0112110.1080/23322039.2023.2296230Annual report readability and firms’ investment decisionsNam Huong Dau0Duy Van Nguyen1Hai Thi Thanh Diem2Center for International Knowledge Sharing, Ho Chi Minh National Academy of Politics, Hanoi, VietnamFaculty of Business and Economics, Phenikaa University, Hanoi, VietnamFPT University, Greenwich Vietnam, Hanoi, VietnamAbstractAn easy-to-read report may carry positive information for decision making and conversely. In that spirit, this paper investigates the relationship between the readability of companies’ annual reports, defined as the easiness to read, understand, and extract information from the reports, and investment decisions of Singapore companies. Empirical results with an DGMM analysis on 251 domestic companies listed on the Singapore Stock Exchange (SGX) show a positive relationship between the readability of annual reports this year and investments next year. As such, reports’ readability can serve as a signal significant to predict companies’ future investments. Our findings are consistent with signaling theory and contribute significantly to the literature for empirical investigations on the relationship of annual reports’ readability and firms’ investment decisions.https://www.tandfonline.com/doi/10.1080/23322039.2023.2296230Readabilityinvestment decisioninvestment volumeannual reportSingapore stock exchangeDavid McMillan, University of Stirling, UK |
| spellingShingle | Nam Huong Dau Duy Van Nguyen Hai Thi Thanh Diem Annual report readability and firms’ investment decisions Cogent Economics & Finance Readability investment decision investment volume annual report Singapore stock exchange David McMillan, University of Stirling, UK |
| title | Annual report readability and firms’ investment decisions |
| title_full | Annual report readability and firms’ investment decisions |
| title_fullStr | Annual report readability and firms’ investment decisions |
| title_full_unstemmed | Annual report readability and firms’ investment decisions |
| title_short | Annual report readability and firms’ investment decisions |
| title_sort | annual report readability and firms investment decisions |
| topic | Readability investment decision investment volume annual report Singapore stock exchange David McMillan, University of Stirling, UK |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2023.2296230 |
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