Business strategies and annual report readability
© 2018 Accounting and Finance Association of Australia and New Zealand. This study investigates the association between firm-level business strategy and the readability of narrative disclosures in annual reports. As business strategy affects the information environment and financial performance of f...
| Main Authors: | , |
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| Format: | Journal Article |
| Published: |
Wiley-Blackwell Publishing Asia
2018
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| Online Access: | http://hdl.handle.net/20.500.11937/73053 |
| _version_ | 1848762911227379712 |
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| author | Habib, A. Hasan, Mostafa |
| author_facet | Habib, A. Hasan, Mostafa |
| author_sort | Habib, A. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | © 2018 Accounting and Finance Association of Australia and New Zealand. This study investigates the association between firm-level business strategy and the readability of narrative disclosures in annual reports. As business strategy affects the information environment and financial performance of firms, we expect the readability of narrative disclosures to vary with the particular business strategy that a firm pursues. In accord with this expectation, we find that firms with prospector-type business strategies produce less readable narratives, while those with defender-type business strategies produce more readable narratives. We also document that the association between strategy and readability is partially mediated by organisational performance, although the mediation effect is rather modest. These findings are robust when subjected to a series of sensitivity tests. Accounting and Finance |
| first_indexed | 2025-11-14T10:55:05Z |
| format | Journal Article |
| id | curtin-20.500.11937-73053 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:55:05Z |
| publishDate | 2018 |
| publisher | Wiley-Blackwell Publishing Asia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-730532018-12-13T09:35:40Z Business strategies and annual report readability Habib, A. Hasan, Mostafa © 2018 Accounting and Finance Association of Australia and New Zealand. This study investigates the association between firm-level business strategy and the readability of narrative disclosures in annual reports. As business strategy affects the information environment and financial performance of firms, we expect the readability of narrative disclosures to vary with the particular business strategy that a firm pursues. In accord with this expectation, we find that firms with prospector-type business strategies produce less readable narratives, while those with defender-type business strategies produce more readable narratives. We also document that the association between strategy and readability is partially mediated by organisational performance, although the mediation effect is rather modest. These findings are robust when subjected to a series of sensitivity tests. Accounting and Finance 2018 Journal Article http://hdl.handle.net/20.500.11937/73053 10.1111/acfi.12380 Wiley-Blackwell Publishing Asia restricted |
| spellingShingle | Habib, A. Hasan, Mostafa Business strategies and annual report readability |
| title | Business strategies and annual report readability |
| title_full | Business strategies and annual report readability |
| title_fullStr | Business strategies and annual report readability |
| title_full_unstemmed | Business strategies and annual report readability |
| title_short | Business strategies and annual report readability |
| title_sort | business strategies and annual report readability |
| url | http://hdl.handle.net/20.500.11937/73053 |