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1 – 10 of 112The 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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Originality/value
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.
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Chao Zhang, Zenghao Cao, Zhimin Li, Weidong Zhu and Yong Wu
Since the implementation of the regulatory inquiry system, research on its impact on information disclosure in the capital market has been increasing. This article focuses on a…
Abstract
Purpose
Since the implementation of the regulatory inquiry system, research on its impact on information disclosure in the capital market has been increasing. This article focuses on a specific area of study using Chinese annual report inquiry letters as the basis. From a text mining perspective, we explore whether the textual information contained in these inquiry letters can help predict financial restatement behavior of the inquired companies.
Design/methodology/approach
Python was used to process the data, nonparametric tests were conducted for hypothesis testing and indicator selection, and six machine learning models were employed to predict financial restatements.
Findings
Some text feature indicators in the models that exhibit significant differences are useful for predicting financial restatements, particularly the proportion of formal positive words and stopwords, readability, total word count and certain textual topics. Securities regulatory authorities are increasingly focusing on the accounting and financial aspects of companies' annual reports.
Research limitations/implications
This study explores the textual information in annual report inquiry letters, which can provide insights for other scholars into research methods and content. Besides, it can assist with decision making for participants in the capital market.
Originality/value
We use information technology to study the textual information in annual report inquiry letters and apply it to forecast financial restatements, which enriches the research in the field of regulatory inquiries.
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Justyna Fijałkowska, Dominika Hadro, Enrico Supino and Karol M. Klimczak
This study aims to explore the intelligibility of communication with stakeholders as a result of accrual accounting adoption. It focuses on changes in the use of visual forms and…
Abstract
Purpose
This study aims to explore the intelligibility of communication with stakeholders as a result of accrual accounting adoption. It focuses on changes in the use of visual forms and the readability of text that occurred immediately after the adoption of accrual accounting in performance reports of Italian public universities.
Design/methodology/approach
The authors collect the stakeholder section of performance reports published before and after accrual accounting adoption. Then, the authors use manual and computer-assisted textual analysis. Finally, the authors explore the data using principal component analysis and qualitative comparative analysis.
Findings
This study demonstrates that switching from cash to accrual accounting provokes immediate changes in communication patterns. It confirms the significant reduction of readability and increase in visual forms after accruals accounting adoption. The results indicate that smaller universities especially put effort into increasing intelligibility while implementing a more complex accounting system. This study also finds a relation between the change in readability and the change in visual forms that are complementary, with the exception of several very large universities.
Practical implications
The findings underline the possibility of neutralising the adverse effects of accounting reform associated with its complexity and difficulties in understanding by the use of visual forms and attention to the document’s readability.
Originality/value
This paper adds a new dimension to the study of public sector accounting from the external stakeholder perspective. It provides further insight into the link between accrual accounting adoption and readability, together with the use of visual forms by universities.
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Zack Enslin, Elda du Toit and Mangwakong Faith Puane
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Originality/value
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.
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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…
Abstract
Purpose
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.
Design/methodology/approach
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).
Findings
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.
Originality/value
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.
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Leana Esterhuyse and Elda du Toit
Companies are often accused of using sustainability disclosures as public relations tools to manage financial and non-financial stakeholders' impressions. The purpose of our study…
Abstract
Companies are often accused of using sustainability disclosures as public relations tools to manage financial and non-financial stakeholders' impressions. The purpose of our study was firstly to determine how comprehensive the human rights disclosures of a sample of large international companies were and secondly, whether different narrative styles are associated with levels of disclosure to manage readers' impressions about the company. We analysed the public human rights disclosures for 154 large, international companies obtained from the UN Guiding Principles Reporting website. On average, companies complied with only one-third of the UN Guiding Principles Reporting Framework criteria. Communication about policies has the highest compliance, whilst communication about determining which human rights aspects are salient to the company, remedies for transgressions and stakeholder engagement have the lowest disclosure. When we split the sample between high disclosure and low disclosure companies, we found that the readability of the human rights disclosures is exceptionally low and even more so for low disclosure companies. Low disclosure companies used words implying Satisfaction significantly more than high disclosure companies, which provides some support for suspecting that low disclosure companies practise impression management by only presenting a ‘rosy picture’, as well as obfuscation via low readability. We add to the literature on impression management by large corporations in their sustainability reporting, and specifically human rights disclosures, by revealing how the interplay of low disclosure, low readability and overuse of words signalling Satisfaction contributes to impression management, rather than sincere attempts at accountability to all stakeholders.
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Elina Elisabet Haapamäki and Juha Mäki
The objective of this paper is to extend the debate on audit quality in the less complex entity (LCE) context by analyzing comment letters submitted to the International Auditing…
Abstract
Purpose
The objective of this paper is to extend the debate on audit quality in the less complex entity (LCE) context by analyzing comment letters submitted to the International Auditing and Assurance Standards Board (IAASB). The IAASB has drafted a new, stand-alone standard for audits of LCEs’ financial statements.
Design/methodology/approach
The Gioia method is utilized to conduct the qualitative analysis. This enables the material to shine and provide a comprehensive picture of the important aspects of the comment letters about the International Standard on Auditing (ISA) for LCEs. A content analysis of the 145 comment letters is conducted to identify the extent of the support for and the arguments against the new, stand-alone draft standard for audits of LCEs’ financial statements. In addition, this study considers how the comment letters describe the respondents’ views on audit quality in relation to the new standard. Finally, the tone of the comment letters and audit quality arguments is investigated.
Findings
The findings provide a useful framework of the most frequently used arguments supporting and opposing the ISA for LCEs. Within the themes identified, a wide variety of issues and concerns are discussed. The results reveal that the arguments in the comment letters are contradictory. For instance, when discussing audit quality, those interest groups that perceived many positive opportunities in the adoption of the ISA for LCEs thought that the audit quality would increase. Conversely, those interest groups that were skeptical about the success of the ISA for LCEs argued that the audit quality could be compromised by the general prejudice that the ISA for LCEs might be perceived as a lower-quality audit with fewer procedures.
Originality/value
This paper is, to the best of the authors’ knowledge, the first to examine the content of comment letters in the context of a new, stand-alone standard for audits of LCEs. The international audience can utilize the results in the context of the widely discussed issue of reducing LCEs’ auditing obligations. This study aims to contribute to the two streams of accounting literature concerning audit quality and political lobbying.
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Ahmed Elsayed Awad Bakry, Zubir Azhar and K. Kishan
In 2015, Bursa Malaysia Berhad (BMB) issued the first edition of the Sustainability Reporting Guide (SRG 1.0) to aid Malaysian public listed companies (PLCs) in preparing…
Abstract
Purpose
In 2015, Bursa Malaysia Berhad (BMB) issued the first edition of the Sustainability Reporting Guide (SRG 1.0) to aid Malaysian public listed companies (PLCs) in preparing corporate social responsibility reporting (CSRR). After receiving users' commentaries, BMB issued the second edition of SRG (SRG 2.0) in 2018. Given the major amendments in CSRR regulatory guidelines, there is a need to analyze the readability of CSRR in light of the new guide and to investigate the combined effects of SRG 2.0 and the assurance of CSR information on the readability of CSRR.
Design/methodology/approach
This study employs two readability indices to compare the readability of CSRR ex-ante and ex-post the implementation of SRG 2.0 across a sample of Malaysian PLCs that maintained their market capitalization among the top 100 companies.
Findings
The practical findings of the multivariate regression revealed that the readability of CSRR is reduced after the introduction of SRG 2.0. Meanwhile, the readability of CSRR is positively influenced by combining the effect of SRG 2.0 and CSRR assurance.
Practical implications
This study provides empirical evidence that the amendment to CSRR has made CSR reports more challenging to read and thus reduces their communicative value. Therefore, in their quest to mandate more CSRR information from companies, regulators might need to consider advocating that such data is reported in a readable manner. This study also shows the influential role of CSR information assurance in enhancing the readability of CSRR.
Originality/value
This study helps assess the readability of CSRR among Malaysian companies after the adoption of SRG 2.0. It also contributes to the literature on CSRR, as the readability of such reporting within the context of Malaysia has not been widely examined in previous studies.
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Zhipeng Xie, Tao Wang, Jing Zhao and Huanyu Qin
This study aims to test the possible correlation between the letter height-to-width ratio and consumers’ perception of cuteness.
Abstract
Purpose
This study aims to test the possible correlation between the letter height-to-width ratio and consumers’ perception of cuteness.
Design/methodology/approach
Through the design of three groups of experimental questionnaires, this paper carried out experiments on subjects with different professional backgrounds.
Findings
The result shows that perceived cuteness is only beneficial for consumers who adopt communal relationship (rather than exchange relationship) with the brand. Compared to consumers who adopt communal relationship with brands, letters of lower height-to-width ratio are perceived as cuter and thus more preferable than thinner ones, whereas for consumers who adopt exchange relationship with brands, thinner letters are preferred.
Research limitations/implications
To rule out interference, this study focuses only on the height-to-width ratio of the letters. In the future, researchers can pay more attention to the mobility of brand relationships, consumers’ reading strategy and logos’ visual elements that influence consumers’ brand perception (besides height-to-width ratio).
Practical implications
The research reminds scholars that the height-to-width ratio of letters/logos is not only of aesthetic value but also imposes a great impact on consumer perception. And the result of this research explains the contradiction in consumers’ preference for wide vs thin letter shapes and provides evidence for the interaction between brand relationship norms and letter preferences.
Originality/value
To the best of the authors’ knowledge, this research is the first to explore the influence of letter height-to-width ratio in marketing.
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