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The textual complexity of annual report narratives: a comparison of high-and low-performance companies


Hrasky, S and Mason, CJ and Wills, DI, The textual complexity of annual report narratives: a comparison of high-and low-performance companies, New Zealand Journal of Applied Business Research, 7, (2) pp. 31-45. ISSN 1175-8007 (2009) [Refereed Article]

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Regulators world-wide haveplacedincreasing emphasis on narrativedisclosures in annualreportsas a means of informing shareholders about the position and prospects of their company. However, such disclosures have the potential to be strategically manipulated to influence the levelof complexity that confronts the reader. This studyfocuses onthe assessment of textualcomplexity using readability formulae. The potential and limitations of the formulae are explained and an empirical analysis conducted to assess differences in the textual complexity of the chairperson's annual report letter in a sample of Australian companies that have performed well and those that have performed badly. The resultsindicatethat the chairpersons' lettersof the poorperformers are significantly more textually complex than those of the high performance group.

Item Details

Item Type:Refereed Article
Research Division:Commerce, Management, Tourism and Services
Research Group:Accounting, auditing and accountability
Research Field:Accounting, auditing and accountability not elsewhere classified
Objective Division:Culture and Society
Objective Group:Communication
Objective Field:Communication not elsewhere classified
UTAS Author:Hrasky, S (Dr Susan Hrasky)
UTAS Author:Mason, CJ (Miss Clare Mason)
UTAS Author:Wills, DI (Dr Debbie Wills)
ID Code:61895
Year Published:2009
Deposited By:Accounting and Corporate Governance
Deposited On:2010-03-08
Last Modified:2013-01-21
Downloads:6 View Download Statistics

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