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The purpose of this study is to evaluate whether the amendments to International Accounting Standard (IAS) 39 and the introduction of International Financial Reporting Standards (IFRS) 9 enhanced the readability, and thus the quality and usefulness of risk disclosure information.

Readability analyses are performed on companies listed on the Johannesburg Stock Exchange (JSE) from 2005 to 2021. The sample period includes the period when companies disclosed information according to IAS 39 (2005–2017) and IFRS 9 (2018–2021).

The results of the analyses show risk disclosures for JSE-listed companies to be complex and difficult to understand. Furthermore, risk disclosures have become longer and less readable with the introduction of amendments to IAS 39 and the introduction of IFRS 9.

This study uses readability measures as a proxy for the complexity and usefulness of risk disclosures. The amount of utility a user of financial statements derives could be dependent on other factors such as the quality of disclosure, individual user background and perceptions.

The results have valuable implications for the various stakeholders that make use of the information contained in financial statements. Stakeholders such as regulators and standard setters should carefully assess how accounting standards change to ensure that one of the key objectives of the IASB, namely, to provide information that is relevant, reliable and understandable, is met.

The results of this study contribute to the discourse on the usefulness of companies’ risk disclosures. Though, to the best of the authors’ knowledge, this is the first study to compare the readability of risk disclosures from an emerging market perspective, the results can be applied to other countries using IFRS to assess the readability of risk disclosures.

This paper focuses on the orientation of the economy expressed in the communication of the Central Economic Work Conference (CEWC) of China and its relation with the stock market. This study seeks to explore which orientation of the economy may have a stronger impact on the rise of the stock market. It proposes words connoting orientation of the economy (WOE) that is closely related to the stock market, and different WOE has different impacts on the stock market in terms of intensity. The study aims to provide investors with better investment strategies by identifying the stronger developmental WOE.

The paper opted for an exploratory study using the textual analysis approach, based on a corpus of 28 CEWC communications spanning from 1994 to 2021. The raw corpus amounted to 50,754 words in total that are treated with noise reduction method and record an effective corpus of 39,591.

The paper provides empirical insights into the close relationship of the WOE of the CEWC to the stock market, and different WOE has different impacts on the stock market in terms of intensity. It suggests that WOE connoting development may forecast a rising stock market if it is nearly 40% higher than the other two WOEs by impact index.

As WOE is only proven in the CEWC, this paper has its limitations in the scope of samples. It is necessary to apply WOE to more Central Bank communication (CBC) and countries. It is desirable to apply the Gunning–Fog index.

The paper includes implications for investors to read out the orientation of the economy and the degree of different WOEs. Investors are keener to know “what” degree of the CEWC leads to the rise/fall of the stock market. The impact index can be an indicator of a tendency of the stock market, which upgrades the rationality of investment decisions.

This paper fulfills words connoting the orientation of economy as an identified linguistic feature, which the impact of CEWC on stockmarket can be measured.

Previous academic research studies mostly focus on the impact on stock market from the language features of CBC, rather than that from the more influential body, CEWC communication. This study seeks to provide the relationship of CEWC communication and the time length of the impact on the stock prices.

Corporate social responsibility (CSR) is significant in the financial market. Despite plenty of existing research on CSR, few studies have quantified the fine-grained aspects of CSR and examined how diverse CSR aspects are associated with firms' trade credit. Based on the released CSR reports, this paper strives to measure the CSR fulfillment of firms and examine the relationships between CSR and trade credit in terms of textual features presented in these reports.

This research proposes a natural language processing-based framework to extract the overall readability and the sentiment of fine-grained aspects from CSR reports, which can signal the performance of firms' CSR in diverse aspects. Furthermore, this paper explores how the textual features are associated with trade credit through partial dependence plots (PDPs), and PDPs can generate both linear and nonlinear relationships.

The study’s results reveal that the overall readability of the reports is positively associated with trade credit, while the performance of the fine-grained CSR aspects mentioned in the CSR reports matters differently. The performance of the environment has a positive impact on trade credit; the performance of creditors, suppliers and information disclosure, shows a U-shaped influence on trade credit; while the performance of the government and customers is negatively associated with trade credit.

This study expands the scope of research on CSR and trade credit by investigating fine-grained aspects covered in CSR reports. It also offers some managerial implications in the allocation of CSR resources and the presentation of CSR reports.

Risk information provides information to enable stakeholders to make informed decisions about a company. Corporate communications should be readable and unbiased so as not to hamper disclosure usefulness. This study assesses whether risk disclosures in the integrated reports are readable and unbiased.

The readability and narrative tone of South African listed companies' risk and risk management disclosures as disclosed in their integrated reports are analysed using automated software for the Top 40 JSE listed companies from 2015 to 2019.

The results show that risk and risk management disclosures are unreadable and lack any improvement in readability during the period. Additionally, these disclosures are biased toward narrative tones signalling communality and certainty.

The study adds to the literature on the readability of corporate reports, by focussing on the readability and narrative tone of risk and risk management disclosures during a period of increased scrutiny over the content of such disclosures. Also, by analysing risk disclosure and risk management disclosure separately, and by performing trend analysis to determine whether requirement changes related to content (specifically King IV) affect readability and narrative tones.

The purpose of this paper is to explore how non-professional investors (NPIs) with varying levels of financial sophistication interpret and perceive corporate disclosures and management credibility, specifically risk factors, when those disclosures are presented in readable and less-readable formats.

The paper uses an online experiment to test hypotheses related to the effects of financial sophistication (measured) and readability (manipulated) on NPIs’ equity valuations and perceptions of management credibility (competence and trustworthiness).

Increased readability appears to counteract less-sophisticated NPIs’ conservatism in equity valuations, such that they are not statistically significantly different from more-sophisticated NPIs’ equity valuations. Further, less-sophisticated NPIs judge management as less competent when disclosures are less readable, while more-sophisticated NPIs judge management as more competent when disclosures are less readable.

The paper has important implications for the SEC’s regulations related to plain English requirements for risk factor and other corporate disclosures. Financial sophistication varies among NPIs, and readability appears to influence these individuals in different ways.

The SEC’s Concept Release (April 13, 2016) acknowledges the need to update and improve risk factor disclosure regulations. This study provides evidence that contributes to those decisions.

The paper extends the research on processing fluency, by examining readability of disclosures with a consistent tone (negative). The NPIs surveyed are directly representative of the population of interest for risk factor disclosure regulations.

This paper aims to investigate how congruent keywords are used in information security policies (ISPs) to pinpoint and guide clear actionable advice and suggest a metric for measuring the quality of keyword use in ISPs.

A qualitative content analysis of 15 ISPs from public agencies in Sweden was conducted with the aid of Orange Data Mining Software. The authors extracted 890 sentences from these ISPs that included one or more of the analyzed keywords. These sentences were analyzed using the new metric – keyword loss of specificity – to assess to what extent the selected keywords were used for pinpointing and guiding actionable advice. Thus, the authors classified the extracted sentences as either actionable advice or other information, depending on the type of information conveyed.

The results show a significant keyword loss of specificity in relation to pieces of actionable advice in ISPs provided by Swedish public agencies. About two-thirds of the sentences in which the analyzed keywords were used focused on information other than actionable advice. Such dual use of keywords reduces the possibility of pinpointing and communicating clear, actionable advice.

The suggested metric provides a means to assess the quality of how keywords are used in ISPs for different purposes. The results show that more research is needed on how keywords are used in ISPs.

The authors recommended that ISP designers exercise caution when using keywords in ISPs and maintain coherency in their use of keywords. ISP designers can use the suggested metrics to assess the quality of actionable advice in their ISPs.

The keyword loss of specificity metric adds to the few quantitative metrics available to assess ISP quality. To the best of the authors’ knowledge, applying this metric is a first attempt to measure the quality of actionable advice in ISPs.

While existing research explores the impact of audit market competition on audit fees and audit quality, there is limited investigation into how competition in the audit market influences auditors' writing style. This study examines the relationship between audit market competition and the readability of audit reports in Iran, where competition is particularly intense, especially among private audit firms.

The sample comprises 1,050 firm-year observations in Iran from 2012 to 2018. Readability measures, including the Fog index, Flesch-Reading-Ease (FRE) and Simple Measure of Gobbledygook (SMOG), are employed to assess the readability of auditors' reports. The Herfindahl–Hirschman Index (HHI) is utilized to measure audit market competition, with lower index values indicating higher auditor competition. The concentration measure is multiplied by −1 to obtain the competition measure (AudComp). Alternative readability measures, such as the Flesch–Kincaid (FK) and Automated Readability Index (ARI) are used in additional robustness tests. Data on textual features of audit reports, auditor characteristics and other control variables are manually collected from annual reports of firms listed on the Tehran Stock Exchange (TSE).

The regression analysis results indicate a significant and positive association between audit market competition and audit report readability. Furthermore, a stronger positive and significant association is observed among private audit firms, where competition is more intense compared to state audit firms. These findings remain robust when using alternative readability measures and other sensitivity checks. Additional analysis reveals that the positive effect of competition on audit report readability is more pronounced in situations where the auditor remains unchanged and the audit market size is small.

This paper expands the existing literature by examining the impact of audit market competition on audit report readability. It focuses on a unique audit market (Iran), where competition among audit firms is more intense than in developed countries due to the liberalization of the Iranian audit market in 2001 and the establishment of numerous private audit firms.

This study investigates the relationship between the Chief Executive Officer's (CEO) overconfidence and financial reporting complexity in Iran, a context characterized by weak corporate governance and heightened managerial discretion.

The sample consists of 1,445 firm-year observations from 2010 to 2021. CEO overconfidence (CEOOC) is evaluated using an investment-based index, specifically capital expenditures. Financial reporting complexity (Complexity) is measured through textual features, particularly three readability measures (Fog, SMOG and ARI) extracted from annual financial statements. The ordinary least squares (OLS) regression is employed to test the research hypothesis.

Results suggest that CEOOC is positively related to Complexity, leading to reduced readability. Additionally, robustness analyses demonstrate that the relationship between CEOOC and Complexity is more distinct and significant for firms with lower profitability than those with higher profitability. This implies that overconfident CEOs in underperforming firms tend to increase complexity. Also, firms with better financial performance present a more positive tone in their annual financial statements, reflecting their superior performance. The findings remain robust to alternative measures of CEOOC and Complexity and are consistent after accounting for endogeneity issues using firm fixed-effects, propensity score matching (PSM), entropy balancing approach and instrumental variables method.

This study adds to the literature by delving into the effect of CEOs' overconfidence on financial reporting complexity, a facet not thoroughly investigated in prior studies. The paper pioneers the use of textual analysis techniques on Persian texts, marking a unique approach in financial reporting and a first for the Persian language. However, due to the inherent challenges of text mining and feature extraction, the results should be approached with caution.

The insights from this study can guide investors in understanding the potential repercussions of CEOOC on financial reporting complexity. This will assist them in making informed investment decisions and monitoring the financial reporting practices of their invested companies. Policymakers and regulators can also reference this research when formulating policies to enhance financial reporting quality and ensure capital market transparency. The innovative application of textual analysis in this study might spur further research in other languages and contexts.

This research stands as the inaugural study to explore the relationship between CEOs' overconfidence and financial reporting complexity in both developed and developing capital markets. It thereby broadens the extant literature to include diverse capital market environments.

The purpose of the research was to find out if there are any differences in the readability score between abstracts published in scientific journals from library and information science with and without an impact factor. Therefore, the author made a comparison between the readability of abstracts from one journal with (Journal of Documentation) and one journal without (Knjižnica or Library) an impact factor.

As a measure of readability, the Flesch Reading Ease Readability Formula was used. Then, with the help of statistical experts, a comparison of the readability scores between the abstracts of two selected journals was performed.

The results showed that some statistically important differences exist between the abstracts published in the Journal of Documentation and Knjižnica. The statistically important differences were found in the number of words and sentences in abstracts and in the readability of abstracts included in the research. Therefore, it can be said that there exists a statistically important difference between abstracts with and without an impact factor.

The primary purpose was to find out whether there is a statistically important difference in the readability score of abstracts with and without an impact factor in the field of library and information science. Some similar research studies have been conducted in other scientific fields.

Clinical notes typically contain medical jargons and specialized words and phrases that are complicated and technical to most people, which is one of the most challenging obstacles in health information dissemination to consumers by healthcare providers. The authors aim to investigate how to leverage machine learning techniques to transform clinical notes of interest into understandable expressions.

The authors propose a natural language processing pipeline that is capable of extracting relevant information from long unstructured clinical notes and simplifying lexicons by replacing medical jargons and technical terms. Particularly, the authors develop an unsupervised keywords matching method to extract relevant information from clinical notes. To automatically evaluate completeness of the extracted information, the authors perform a multi-label classification task on the relevant texts. To simplify lexicons in the relevant text, the authors identify complex words using a sequence labeler and leverage transformer models to generate candidate words for substitution. The authors validate the proposed pipeline using 58,167 discharge summaries from critical care services.

The results show that the proposed pipeline can identify relevant information with high completeness and simplify complex expressions in clinical notes so that the converted notes have a high level of readability but a low degree of meaning change.

The proposed pipeline can help healthcare consumers well understand their medical information and therefore strengthen communications between healthcare providers and consumers for better care.

An innovative pipeline approach is developed to address the health literacy problem confronted by healthcare providers and consumers in the ongoing digital transformation process in the healthcare industry.