Readability of corporate reports and impression management

Abstract

Purpose-Understanding the disclosed information about the company is necessary for decision-making. Prior research shows that companies could use different writing style to obscure negative information. The main aim of the paper is to review readability measures and to understand how readability of corporate reports could be used as a tool for impression management. Methodology-The literature is rewived to find out the readability measures and to understand how readability of corporate reports could be used as a tool for impression management. Findings-It is found that different readability formulas are developed in the literature. The most common readability formulas are developed on text in English. However, there are different readability measures in different language. Conclusion-To disclose corporate information in readable form is necessary condition for stakeholders' their decision making process. In addition, corporation could use readability of disclosed information for their impression management.