Do Peer Firms Influence Annual Report Readability?

الدور المُعدل للمنافسة فى سوق المنتج على العلاقة بين القدرة الإدارية وقابلية التقارير المالية للقراءة(باللغة الانجليزية)

“…A higher level of PMC may encourage a firm to increase information opacity to make reports less readable. Especially for firms that are subject to credit constraints, have a high PMC, and have high volatility in returns, These firms are more likely to have accounting irregularities and a higher level of information asymmetry, which increases the incentive to manipulate earnings (Markarian & Santalo, 2014;Salehi et al, 2020;Allee et al, 2021;Machokoto et al, 2022). This result is consistent with the notion that competition pressure increases managerial incentives to manage earnings due to their career concerns (Shi et al, 2018).…”

“…Multiple determinates are influencing the readability of annual financial reports, which continue to attract research interest, especially with advancements in the business environment and pressure to improve corporate disclosures (Gosselin et al, 2021;Machokoto et al, 2022). For example, Lim et al (2018) investigate the impact of business strategy on financial report readability, IFRS adoption (Jang & Rho, 2016;Hidayatullah & Setyaningrum, 2019), ownership structure (Shandiz et al, 2022), earning management (Arora & Chauhan, 2023), and management characteristics (Salehi et al, 2020;Seifzadeh et al, 2021).…”