Annual Report Readability, Current Earnings, and Earnings Persistence

By Feng Li. 2008

2,455 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/ece2f55a94d65062e02961ec19b7ec838dce4a2c

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Citations in the corpus

Accounting Quality, Stock Price Delay and Future Stock Returns (2013, positive): “Annual reports that are more difficult to read are likely associated with lower quality cash flow forecasts and more delayed (less timely) incorporation of value-relevant information into stock prices (e.g., Grossman and Stiglitz, 1980; Bloomfield, 2002; Li, 2008).”
Employee Ownership and Firm Disclosure (2015, methodology): “Following their approach, we manually match those firms with our firms through Gvkey, and run our analyses using these firms only (N = 800).”
The Joint Effects of Materiality Thresholds and Voluntary Disclosure Incentives on Firms' Disclosure Decisions (2010, background): “2003) and self-constructed measures (Botosan 1997; Lang and Lundholm 2000; Botosan and Plumlee 2002; Li, 2008).”
Accounting Anomalies and Fundamental Analysis: A Review of Recent Research Advances (2010, background): “, Sharpe, 1964 and Lintner, 1965) suggesting that assets with similar characteristics will behave in similar ways. Ross (1976) develops a linear asset”
Complexity of financial reporting standards and accounting expertise (2019, neutral): “For instance, Bloomfield (2008) provides an alternative explanation for the findings in Li (2008) that firms with lower earnings quality have less readable reports: losses and transitory income are more difficult to communicate.”
Textual risk disclosures and investors’ risk perceptions (2013, positive): “Li (2008) finds that the readability of annual reports is associated with earnings persistence, and Lehavy et al. (2011) find that the readability of annual reports affects investors’ decisions.”
Is forward-looking financial disclosure really informative? Evidence from UK narrative statements (2015, background): “Li (2008) concludes that managers can use their discretion in preparing narrative reporting to strategically obfuscate the financial results.”
Evidence on the use of unverifiable estimates in required goodwill impairment (2012, positive): “” See Appendix A for a consolidated description of all variables. Parameter estimates in the multivariate regression are computed using ordinary least squares and standard errors are adjusted for heteroskedasticity as suggested by White (1980).”
Manager sentiment and stock returns (2019, methodology): “Because the filed documents are often in HTML format, following Li (2008, 2010), we remove all encoded images, tables, exhibits, HTML code, special symbols, and other non-text items from the documents.”
Guiding Through the Fog: Financial Statement Complexity and Voluntary Disclosure (2016, positive): “K filing (e.g., Li, 2008), and we measure voluntary disclosure using the frequency and immediacy of management forecasts (e.g., Balakrishnan et al., 2014a; Balakrishnan et al., 2014b).”
Corporate governance and risk disclosure: evidence from Saudi Arabia (2019, neutral): “The average is very low compared with averages of 78, 28, and 20 sentences found by Linsley and Shrives (2006), Elzahar and Hussainey (2012), and Al-Shammari (2014), respectively.”