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Does product market competition influence annual report readability?

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journal contribution
posted on 2024-04-03, 04:53 authored by Dewan Rahman, Muhammad Kabir, Muhammad AliMuhammad Ali, Barry Oliver
We study product market competition’s influence on annual report readability. As competition increases in an industry, our findings show that firms reduce the readability of their annual reports. We further document that the impact of competition on annual report readability is stronger for research and development (R&D)-intensive firms, for firms that have a higher level of trade secrecy (i.e. proprietary information), and for firms with higher levels of CEO performance-based incentives. Overall, our findings highlight the importance of the proprietary cost effect of competition on annual report readability.

History

Publication Date

2024-04-01

Journal

Accounting and Business Research

Volume

54

Issue

3

Pagination

32p. (p. 337-368)

Publisher

Taylor & Francis

ISSN

0001-4788

Rights Statement

© 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.