Processing Fluency and Investors’ Reactions to Disclosure Readability

By Kristina Rennekamp. 2012

537 citations recorded by the source corpus.

Subfields: Accounting, Finance, General Decision Sciences

View Paper: https://www.semanticscholar.org/paper/6bd50c646a4b4f280eeba3b4ecb5f0dcf615ddc1

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Citations in the corpus

Earnings management and annual report readability (2017, unknown): “For real activities earnings management, we focus on discretionary expenses (Roychowdhury 2006), specifically research and development (R&D) and advertising expenses.”
Perceptions and Price: Evidence from CEO Presentations at IPO Roadshows (2017, methodology): “In finance and accounting research, MTurk is being used as an alternative to traditional lab experiments (e.g., Rennekamp, 2012; Koonce, Miller, and Winchel, 2015; Asay and Hales, 2015), and there is also potential for its use to generate a construct not available via archival sources (e.g.,…”
A Plain English Measure of Financial Reporting Readability (2017, unknown): “The software first identifies the average sentence length for 13 Prior studies that incorporate detailed measures of financial statement readability based on plain English attributes include Miller (2010) and Rennekamp (2012).”
Why are 10-K Filings so Long? (2016, background): “A recent stream of research finds that investors’ ability to process relevant information in the 10-K is impaired by disclosure complexity (e.g., Lehavy et al. 2011; Rennekamp 2012).”
Hyperbole or Reality? Investor Response to Extreme Language in Earnings Conference Calls (2019, unknown): “…number of papers examine linguistic attributes other than tone, such as readability and complexity (Li 2008; You and Zhang 2009; Miller 2010; Rennekamp 2012; Bonsall and Miller 2017; Chychyla, Leone, and Minutti-Meza 2019); content and similarity (Hanley and Hoberg 2010; Hoberg and…”
How does readability influence investors' judgments? Consistency of benchmark performance matters (2015, unknown): “While improved understanding can help investors make more informed judgments (Securities and Exchange Commission [SEC] 1998; Bloomfield 2002), prior research also documents that processing fluency influences investors’ reliance on the disclosure (Shah and Oppenheimer 2007; Rennekamp 2012).”
Does concrete language in disclosures increase willingness to invest? (2014, unknown): “…tone (Henry 2008; Kothari et al. 2009; Feldman et al. 2010; Demers and Vega 2011; Davis et al. 2012, 2014; Davis and Tama-Sweet 2012), vividness (Hales et al. 2011), and readability (Li 2008; You and Zhang 2009; Miller 2010; Rennekamp 2012; Lawrence 2013; Tan et al. 2013; Lundholm et al. 2014).”
Annual report readability and corporate agency costs (2018, unknown): “…management problems, poor earnings persistence, low analyst forecast quality, weak market reactions to annual reports and a high risk of stock price crashes (Ertugrul et al., 2017; Kim et al., 2017a, 2017b; Lang and Stice-Lawrence, 2015; Lawrence, 2013; Li, 2008; Lo et al., 2017; Rennekamp, 2012).”