The effect of issuance documentation disclosure and readability on liquidity: Evidence from green bonds

Investor strategies in the green bond market: The influence of liquidity risks, economic factors and clientele effects

“…Therefore, a possible extension of our work may be to decompose the yield premium into credit and liquidity premia. Another direction would be to assess the impact of the EU Taxonomy recently voted and the related EU green bond standard that allow for greater transparency on the use of green bond proceeds (Lebelle et al, 2021) on the liquidity premium and on investor strategies.…”

“…The bid-ask spread is arguably the most utilised measure of liquidity costs and has been widely used as a major proxy of the degree of green bond liquidity (e.g., Fender et al, 2019;Lebelle et al, 2021). As for ZTD, it is used as a liquidity proxy in a host of empirical studies (Chen et al, 2007).…”

Does managerial ability and auditor report readability affect corporate liquidity and cost of debt?

“…Accordingly, from the foregoing evidence, more cash is likely to be held by companies with less readable narrative disclosures in annual reports. An analysis of extant literature suggests that the impact of auditor report readability remains neglected for non-financial sector firms in Oman (Lebelle et al, 2022;Cho et al, 2022;Dalwai et al, 2021a, b;Satt and Iatridis, 2022;Rjiba et al, 2021). Therefore, this research investigates the following hypothesis from a precautionary motive perspective: H4.…”

“…A review of studies published between 2019 and 2022 suggests readability has been investigated mainly for the company's annual reports (Lebelle et al, 2022;Cho et al, 2022;Dalwai et al, 2021a, b;Satt and Iatridis, 2022;Rjiba et al, 2021). Only one of the recent studies has taken into account the readability of auditor reports by exploring its relationship with managerial entrenchment, managerial ownership and corporate governance (Salehi et al, 2022), and another explored the readability of key audit matters with the cost of debt (Wuttichindanon and issarawornrawanich, 2022).…”

“…These studies focus on financial, non-financial or both sectors. While there are abundant readability studies focusing on US companies (Lebelle et al, 2022;Hsieh, 2022;Rjiba et al, 2021;Hasan and Habib, 2020), there are no for Omani non-financial sector. This research hypothesizes the relationship between audit report readability and cost of debt based on the agency theory perspective as follows: ARA 31,3 H3.…”