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Annual Report Readability and Information Disclosure Quality: Evidence from Tunisia |
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PP: 573-587 |
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Author(s) |
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Narjess Toumi,
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Abstract |
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| The current paper examines the impact of the readability level of annual reports on the quality of information disclosure for Tunisian context. Namely, using the data analysis, empirical study is conducted through a linear regression model linking the dependent variables (disclosure score) and independent variables in terms of readability score, managerial property, the price earnings ratio as well as the financial profitability. It is revealed that the quality of information is considerably correlated to the readαability of annual reports. For instance, we show that lessening managerial property leads to disclosure of information enhancement by the manager. Among the main findings, it is observed that the disclosure score (DSCORE) decreases with managerial property (PMAN) with a coefficient value of (α! = −89.11) revealing a significant association at 1% level (𝑃 > 𝑡 = 0.000) and confirming the results from literature. Analysis also demonstrates the positive correlation between the company performance and disclosure level that is further confirmed with respect to results predicted by other authors. Our findings complement prior research in the field of information disclosure of annual reports with relation to readability level and present an effective methodology to measure the difficulty of the text while verifying the originality of strategic, financial, and nonfinancial information.
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