Employee treatment and annual report readability

PurposeIn this study, we examine the relation between employee treatment and annual report readability, which is measured as a reading difficulty score.Design/methodology/approachWe use regression analysis to explore the impact of employee treatment on annual report reading difficulty.FindingsWe fin...

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Bibliographic Details
Published in:International journal of managerial finance 2024-10, Vol.20 (5), p.1398-1423
Main Authors: Murphy, Brid, Sun, Li, Meng (Vivian) Wang
Format: Article
Language:English
Subjects:
Accounting
Annual reports
Employees
Financial reporting
Hypotheses
Investments
Investors
Profits
Readability
Reading
Regression analysis
Social responsibility
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Description
Summary:PurposeIn this study, we examine the relation between employee treatment and annual report readability, which is measured as a reading difficulty score.Design/methodology/approachWe use regression analysis to explore the impact of employee treatment on annual report reading difficulty.FindingsWe find a significant negative relation between employee treatment and reading difficulty, which suggests that annual reports of firms with better employee treatment are easier to read and understand (i.e. more readable).Originality/valueOur study contributes to a more thorough knowledge of annual report readability and our findings may be of relevance to accounting standard setters and investors.
ISSN:1743-9132
1758-6569
DOI:10.1108/IJMF-03-2023-0151