Textual disclosure complexity and analysts’ weighting of information

IF 2.9 3区 管理学 Q2 BUSINESS, FINANCE Journal of Contemporary Accounting & Economics Pub Date : 2023-12-15 DOI:10.1016/j.jcae.2023.100395
Xiaoxiao Yu , Lei Zhao
{"title":"Textual disclosure complexity and analysts’ weighting of information","authors":"Xiaoxiao Yu ,&nbsp;Lei Zhao","doi":"10.1016/j.jcae.2023.100395","DOIUrl":null,"url":null,"abstract":"<div><p>This study investigates the influence of textual complexity in firms’ annual reports (Form 10-K) on financial analysts’ weighting of information. Drawing on a sample of U.S.-listed companies spanning from 1994 through 2020, we demonstrate that analysts tend to under-weight private information when 10-K reports are more readable, especially when the disclosed events indicate positive news, and when analysts face high workloads. Additionally, we find that analysts can identify managers’ opportunistic disclosure practices and rationally allocate weight between private and public information. Our findings suggest that analysts are affected by the underlying reporting and business complexity but not misled by the discretionary readability of 10-K reports when weighting information.</p></div>","PeriodicalId":46693,"journal":{"name":"Journal of Contemporary Accounting & Economics","volume":null,"pages":null},"PeriodicalIF":2.9000,"publicationDate":"2023-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S1815566923000450/pdfft?md5=baf0d74e82218c50c504a0b66720e360&pid=1-s2.0-S1815566923000450-main.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Contemporary Accounting & Economics","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1815566923000450","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0

Abstract

This study investigates the influence of textual complexity in firms’ annual reports (Form 10-K) on financial analysts’ weighting of information. Drawing on a sample of U.S.-listed companies spanning from 1994 through 2020, we demonstrate that analysts tend to under-weight private information when 10-K reports are more readable, especially when the disclosed events indicate positive news, and when analysts face high workloads. Additionally, we find that analysts can identify managers’ opportunistic disclosure practices and rationally allocate weight between private and public information. Our findings suggest that analysts are affected by the underlying reporting and business complexity but not misled by the discretionary readability of 10-K reports when weighting information.

查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
文本披露复杂性与分析师的信息权重
本研究探讨了公司年报(10-K 表)文本复杂性对金融分析师信息权重的影响。我们以 1994 年至 2020 年的美国上市公司为样本,证明当 10-K 报告的可读性较高时,分析师倾向于降低私人信息的权重,尤其是当披露的事件表明是利好消息时,以及当分析师面临较高的工作量时。此外,我们还发现,分析师可以识别管理者的机会主义披露行为,并在私人信息和公开信息之间合理分配权重。我们的研究结果表明,分析师在确定信息权重时,会受到基本报告和业务复杂性的影响,但不会被 10-K 报告的可读性所误导。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
CiteScore
6.00
自引率
3.00%
发文量
24
期刊最新文献
Expanded auditor’s reports and voluntary disclosure Long-term tax strategy and corporate acquisition payment structure: An analysis based on the book-tax tradeoff theory Dividend signalling and investor protection: An international comparison MD&A tone and stock returns The bright side of staggered boards: Evidence from labor investment efficiency
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1