Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/321397 
Year of Publication: 
2024
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 12 [Issue:] 1 [Article No.:] 2296230 [Year:] 2024 [Pages:] 1-10
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
An 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.
Subjects: 
Readability
investment decision
investment volume
annual report
Singapore stock exchange
JEL: 
A1
G1
M40
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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